Refined Soy Oil rally may farther this week

Fundamental Analysis

Refined Soybean Oil (December contract) futures closed lower on profit taking after sharp rally during the last week.

The USDA’s weekly export sales were in line with trade expectations in soybeans with meal and oil closer to the low end of trade expectations.

Net oil sales were 6,900 tonnes, all for the current marketing year. Sales need to average 17,000 tonnes each week to reach the USDA forecast.

The benchmark November contract on NBOT Exchange (Indore), Ref Soy oil futures closed lower Rs 2.50 at Rs 460.30/10 Kg on Saturday, from its high of the day (462.50) and touched a low of MYR 460.00/10 kg.

Technical Analysis

Ref Soy Oil Prices (NCDEX December Contract) closed lower at 463.60 per 10 Kg on Tuesday; its high of the day was 468.90 levels and touched a low 458.60 level.

Prices closed above its 10 day and below its 20 day EMA. 14-Day RSI is at 57.66, which is in neutral zone.

Outlook

Refined soy oil futures are expected to trade range bound amid subdued trading activity on lack of fresh fundamentals(for short term). However, in the long term perspectives prices are expected to move southwards on account of huge stock of imported edible oil this year as compared to last year and decision of continue to import of crude edible oil at 0% also in favor of bears in the market.

Courtesy: Angel Commodities

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