Fundamental Analysis

Soy oil prices ended in ended lower on account of weak overseas market and lower demand at retail ends on Thursday.

CBOT May Soybean oil futures ended lower at 39.25 cents/pound on Thursday, down 0.58 cents/pound as compared to previous close.

As per Solvent Extractors’ Association of India, the import of vegetable oils in the month of February 2010 was at 6.71 lakh tonnes, down 8 % as compared to 7.30 lakh tonnes in February 2009.

The Solvent Extractors’ Association of India has compiled the import data of vegetable oils (edible oils) for the first 4 month of edible oil marketing year (November 2009 - February 2010) was report at 29.72 lakh tonnes, up 5.25% as compared to 28.25 lakh tonnes during same period last year.

Technical Analysis

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

14-Day RSI is at 36.05, which is in neutral zone.

Daily MACD just turned in negative territory.

Outlook

Refined soy oil futures are expected to trade slightly lower on account of lower demand at retail ends (for short term). In the long term perspective, higher import of edible oils during the first 4 month of oil marketing year as compared to last year during the same period. 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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