MUMBAI (Commodity Online): Prices continue to recover in soy refined on short covering coupled with god buying on current levels. Earlier prices fell substantially during December and January.

Market participants opine that market was trading in oversold region and such type of recovery was due. Physical market demand is likely to improve in the near future. However, it is also true that India has made substantial imports during the last year.

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The Import of crude edible oil jumped nearly 35% to a record 8.4 MMT in 2009 crossing China for the first time in the last six years. India’s edible oil imports comprise almost 80% of palm oil.

The good production prospects of soybean in the Brazil and Argentina will not allow prices to rise too sharply. Thus, current improvement must be seen with a little skepticism. Next few days may remain crucial for the market. A volatile trade may be seen. Buying on dips may prove beneficial for intraday traders.

Courtesy: Religare Commodities

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