Edible oil futures opened up sharply despite weak global markets. Strong domestic demand and bullish trend in most of agriculture commodities supported firm trading in soy bean and oil prices. The active contract December soy bean NCDEX made high of Rs2331 and ended at Rs2297 levels. However, some profit taking at higher levels erased most of the gains in soy oil futures.
Outlook
Soy bean prices have gained by 16.5 percent since first week of September, where arrivals of new crop started arriving in the market
Despite peak arrivals, strong buying from stockiest supporting bullish trend in soy bean prices
However, huge stocks of soy oil and duty free imports are restricting major gains in soy oil prices
Daily arrivals reported around 3 lakh bags and this peak arrival season may continue till end of December
Domestic soy bean output is estimated at 90 lakh tonnes in 2009-10 against 95 lakh tonnes in last year
CBOT soy bean and oil futures recovered sharply in yesterday’s trading session following sharp rise in crude oil prices, which rose near to $80 per barrel
Soy bean futures at CBOT recovered to 1018 cents in yesterday’s trading session and currently trading at 1006 cents, down by 0.07 percent
Soy oil futures rose to 38.23 cents and currently trading at 37.95 cents, down by 0.11 percent
Soy bean and oil futures are expected to remain firm due to firm global markets, however, some profit taking can be seen at higher levels
Courtesy: JRG Wealth Management
Explore Commodity Online Mobile Services
