Fundamental Analysis

July refined soy oil futures ended in green on account of short covering and some fresh buying at lower levels.

Lower import of edible in the month of May also provided support to bulls.

CBOT July Soybean oil futures ended lower at 37.92 cents/pound on Friday, down 0.13 cents/pound as compared to previous close.

In the month of May,2010, India imported edible oil to 539,159 metric tonnes, down 22% as compared to last year during the same period. In the first 7 months of edible oil marketing year i.e. from Novemebr 2009 to May 2010, India imported 46,28,859 metric tonnes, down 3.38% as compared to last year during the same period.

Spread between NCDEX & MCX July Ref Soy Oil contracts is Rs -1.30 against previous day of Rs -1.00per 10 Kg.

Technical Analysis

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

14-Day RSI is at 44.13, which is in neutral zone.

Outlook

Refined soy oil futures are expected to trade lower on weakness in overseas market, ample availability of edible oil 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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