Thursday, January 14, 2010

Dull overseas demand pulls Ref. Soyoil dow

Fundamental Analysis

Refined Soybean Oil futures closed lower on account of huge stock of edible oils and lower demand at retail ends.

CBOT March Soybean oil futures ended higher at 39.01cents/pound on Wednesday, up 0.38 cents/pound as compared to previous close.

The benchmark February contract on National Board of Trade (NBOT) Exchange, soybean oil ended lower at Rs 571.70/10 Kg on Wednesday, down Rs 2.40/10 Kg as compared to previous day.

Technical Analysis

Ref Soy Oil Prices (NCDEX February Contract) closed lower at 473.35 per 10 Kg on Wednesday; its high of the day was 474.00 levels and touched a low 467.50 level.

Prices closed below its 10 day and its 20 day EMA. 14-Day RSI is at 39.93, which is in neutral zone.

Outlook

Refined soy oil futures are expected to trade lower on weakness in overseas market and lower demand at retail ends. Huge stock of imported edible oil and decision of continue to import of crude edible oil at 0% also in favor of bears in the market.

Courtesy: Angel Commodities

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