The refined soy oil futures advanced its positive trend on Saturday on extended short covering and on speculative buying at lower levels. Indian market took cues from firm overseas market.

Slower pace of soybean sowing also gave underlying support to the market. However, spot market remained subdued because of sluggish buying interest amid higher inventory.

The active July contract RSO futures made an intraday high of Rs.444.90 per 10 kg from a low of Rs.441.70 per 10 kg and settled at Rs.444.35 per quintal.

Outlook

The refined soy oil futures are projected to trade higher during the day on extended short covering and taking cues from firm overseas market.

Positive trend in soybean market is likely to provide support to the market. However, sharp rise may not be seen because of higher stock of edible oil due to heavy imports and poor buy-ing interest in the spot market.

Total edible oil stock as on 1st June is seen at 1.07 million tonnes and 525,000 tonnes is in pipelines.

The open interest in most active July contract fell by 3.34% to 79330 tonnes and vo-lume fell by 12% to 21600 tonnes. The spot price of soy oil is trading at Rs.418-420 per 10 kg.

Courtesy: Angel Commodities

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