Soy oil prices declined on futures platform yesterday owing to anticipation of higher imports of edible oil during January month.
Spot prices remained stable at `665/10kg in Indore market. CBOT soy oil prices ended flat on Tuesday as fresh price triggers were absent ahead of the WASDE report.
Outlook:
Edible oil prices are expected to trade slightly positive on back of estimates released about monthly palm oil data. Output of palm oil may fall by 13% and exports may fall by 15% along with the stock piles estimated at 5 month low.
This weaker supply situation might provide slight cushion to the prices. Revival in demand for bean in U.S. Declining crushing margin in domestic markets is restricting the crushers from crushing beans.
Chinese ban on oil meal imports from India has put domestic oil production at halt which results in positive cues for prices. Bulk buyers are accumulating in spot markets lending support spot prices as well as futures.
However steep upside could be limited on anticipation higher imports of edible oils in the first quarter. Edible oil imports data is due to release in next week which might show higher imports and port wise stocks which could cap steep gains.
Courtesy: Karvy Commtrade Ltd.
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