Fundamental Analysis

July refined soy oil futures ended mildly higher on account of firm overseas market and lower import of edible oils in the last month also provided support to bulls on Wednesday.

CBOT July Soybean oil futures ended at 38.13 cents/pound on Wednesday, up 0.32cents/pound as compared to previous close.

Argentina typically supplies soy oil to China but the trade dispute continues and there is still talk that a port strike scheduled for Argentina on Monday could cause some short-term disruptions in shipments of all grains.

Spread between NCDEX & MCX July Ref Soy Oil contracts is Rs -1.40 against previous day of Rs -0.90 per 10 Kg.

Technical Analysis

Prices closed below its 10 day & 20 day EMA, which indicates bearish market sentiments.

14-Day RSI is at 39.06, which is in neutral zone.

Outlook

Refined soy oil futures are expected to trade lower on account of ample availability and lower demand at retail ends (for short term). In the long term perspective, 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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