Refined Soybean Oil (December contract) futures closed higher on account of firm overseas market on Wednesday.
Higher export figures of Malaysian palm oil also added bullish market sentiments.
National Oilseed Processors Association (NOPA) pegged the October crush at 155.262 million bushels, which is about 18 million bushels above trade expectations.
Despite the much higher than expected crush rate, oil stocks only rose to 2.286 billion pounds at the end of October versus 2.262 billion at the end of September.
The benchmark December contract on NBOT Exchange (Indore), Ref Soy oil futures closed higher Rs 5.70 at Rs 478.00/10 Kg on Tuesday, from its high of the day (478.70) and touched a low of MYR 475.00/10 kg.
Technical Analysis
Ref Soy Oil Prices (NCDEX December Contract) closed higher at 490.75 per 10 Kg on Wednesday; its high of the day was 492.00 levels and touched a low 480.00 level.
Prices closed above its 10 day and below its 20 day EMA. 14-Day RSI is at 74.04, which is in overbought zone.
Outlook
Refined soy oil futures are expected to trade higher on account of firm overseas market (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.
