The refined soy oil futures declined sharply yesterday on speculative selling in the futures and taking cues from weak overseas market.

The sudden fall in BMD palm oil futures triggered by decline in crude oil price also had a bearish impact on the Indian soy oil market.

The active April contract soy oil futures made an intraday low of 453.30 levels from a high of 458.50 levels and settled at 453.80 levels, declining by 0.98%.

Outlook

The refined soy oil futures are projected to trade on a negative note during the day on account of selling pressure backed by weak fundamental factors like huge inventory of edible oil.

Furthermore, weak trend in overseas market is also weigh on the Indian market. According to the Solvent Extractors’ Association of India, soy oil imports during Nov’09-Feb’10 were 380,993 tonnes against 281,349 tonnes in the same period last year.

The open interest in most active April contract increased by 3.45% to 77760 tonnes from 75170 tonnes and volume rose by 4.05% to 60170 tonnes from 57830 tonnes.

Courtesy: Kedia Commodities

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