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Refined Soybean Oil futures closed lower on account of huge stock of edible oils and lower demand at retail ends.
Higher than expected oil stocks number from the National Oilseed Processors Association (NOPA) also contributed to the weakness in soy oil. NOPA pegged member oil stocks at 2.594 billion pounds as of the end of December, about 90 million pounds more than traders expected. As per traders it was due to a higher than expected crush rate of 164.377 million bushels in December.
The benchmark February contract on National Board of Trade (NBOT) Exchange, soybean oil ended lower at Rs 561.90/10 Kg on Saturday, down Rs 6.20/10 Kg as compared to previous day.
CBOT March Soybean oil futures ended lower at 38.53 cents/pound on Thursday, down 0.43 cents/pound as compared to previous close.
Technical Analysis
Ref Soy Oil Prices (NCDEX February Contract) closed lower at 462.80 per 10 Kg on Thursday; its high of the day was 466.10 levels and touched a low 462.95 level.
Prices closed below its 10 day and its 20 day EMA. 14-Day RSI is at 29.70, which is in oversold 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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