Fundamental Analysis
NCDEX July Soybean oil futures closed lower on Monday due to huge stock of edible oil and lower demand at retail ends.
As per Solvent Extractors Association of India, India’s edible oil imports during May rose to 696,625 metric tonnes, up 130% from 302,345 during the same period a year ago.
The benchmark July contract on NBOT Exchange (Indore), Ref Soy oil futures ended slightly higher Rs 0.10 at Rs 480.70/10 Kg on Monday, from its high of the day (480.70) and touched a low of MYR 477.70/10 kg.
CBOT December soybean oil futures ended lower at 36.60 cents/pounds on Monday, down 0.29 cents/pounds as compared to previous close.
Technical Analysis Ref Soy Oil Prices (NCDEX July Contract) closed lower at 481.00 per 10 Kg on Monday; its high of the day was 481.15 and touched a low 478.30 level.
Prices closed below its 10 days and its 20 days EMA. 14-Days RSI is at 46.33.
Outlook
Refined soy oil futures are expected to trade range bound amid subdued trading activity for short term. For medium, prices may improve slightly on festival demands. However, for long term, prices are expected to decline on huge stock of edible oil due to record high import of edible oil in first 7 months of current marketing year as compared to last year during the period.
Courtesy: Angel Commodities
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