Fundamental Analysis

Soy oil prices ended in green on account of firm overseas market on Wednesday.

CBOT May Soybean oil futures ended slightly higher at 41.02 cents/pound on Wednesday, up 0.71 cents/pound as compared to previous close.

The benchmark March contract on National Board of Trade (NBOT) Exchange, soybean oil ended higher at Rs 461.50/10 Kg on Wednesday, up Rs 3.00/10 Kg as compared to previous day.

In Census Bureau soybean oil stocks for January came in at 3.224 billion pounds this morning, up from 3.110 at the end of December. Soy oil used for methyl esters (bio-diesel) was only 89.7 million pounds in January, down sharply - about 62% - from 236 million pounds in December.

Technical Analysis

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

14-Day RSI is at 48.75, which is in neutral zone.

Daily MACD is in positive territory.

Outlook

Refined soy oil futures are expected to trade range bound amid subdued trading activity on lack of fresh fundamentals (for short term). In the long term perspective, higher import of edible oils during the first 3 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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