Fundamental Analysis Refined Soybean Oil (November contract) futures closed higher on global gains due to higher prices of crude oil.
According to Malaysian Meteorological Department, heavy rains are likely in Malaysia in the next 10 days.
The palm oil growing states of Sabah and Sarawak are likely to receive more rain. Heavy rains will delay harvesting of palm oil in near –term.
As per Government officials, India is planning to allow the export of 10,000 metric tonnes of edible oil in the marketing year starting November.
The benchmark November contract on NBOT Exchange (Indore), Ref Soy oil futures closed higher Rs 5.30 at Rs 451.60/10 Kg on Saturday, from its high of the day (453.00) and touched a low of MYR 444.30/10 kg.
Technical Analysis Ref Soy Oil Prices (NCDEX November Contract) closed higher at 452.65 per 10 Kg on Saturday; its high of the day was 454.50 levels and touched a low 444.30 level.
Prices closed above its 10 days and below its 20 days EMA. 14-Days RSI is at 61.47.
Outlook
Refined soy oil futures are expected to trade slightly higher on firm overseas market for short term. However, (for medium to long term) prices are expected to move southwards on account of huge stock of imported edible oil in first 10 months of current oil marketing year as compared to last year during the same period and decision of continue to import of crude edible oil at 0% also in favor of bears in the market.
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