Fundamental Analysis
NCDEX July Soybean oil futures closed lower on Wednesday due to huge stock of edible oil and lower demand at retail ends.
The Central organization for Oil Industry & Trade (COOIT), has called for an immediate re-imposition of customs duty on imports of edible oils.
COOIT said that huge import of edible oil at cheaper rate may affect the viability of the crushing and processing industry. Imports of edible oil surged 85% in first 7 month of marketing of edible oil (November 2008-May 2009).
The benchmark July contract on NBOT Exchange (Indore), Ref Soy oil futures ended lower Rs 2.30 at Rs 475.20/10 Kg on Wednesday, from its high of the day (478.50) and touched a low of MYR 474.90/10 kg.
Technical Analysis
Ref Soy Oil Prices (NCDEX July Contract) closed lower at 475.70 per 10 Kg on Wednesday; its high of the day was 479.20 and touched a low 474.75 level.
Prices closed below its 10 days and its 20 days EMA. 14-Days RSI is at 40.43.
Outlook
Refined soy oil futures are expected to trade lower on account of 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 for short term. For medium term, prices may improve slightly on festival demands.
Courtesy: Angel Commodities
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