Refined Soybean Oil futures opened higher in the morning hours in tandem with firm overseas market. However, it could not sustain higher levels and managed to end in red on account of profit booking an hour before closing.
The benchmark March contract on National Board of Trade (NBOT) Exchange, soybean oil ended lower at Rs 464.60/10 Kg on Wednesday, down Rs 3.50/10 Kg as compared to previous day.
CBOT March Soybean oil futures ended lower at 38.27 cents/pound on Wednesday, down 0.11 cents/pound as compared to previous close.
Spread between NCDEX and MCX March Ref Soy Oil contract is Rs -1.30 against previous day of Rs -1.45 per 10 Kg.
Technical Analysis
Prices closed above its 10 day and its 20 day EMA. 14-Day RSI is at 50.91, which is in neutral zone.
Daily MACD is in positive territory, which indicates bullish market sentiments.
Outlook
Refined soy oil futures are expected to trade slightly higher on account of improvement in domestic demand (for short term). In the long term perspective, higher import of edible oils during the first 2 month of oil marketing year as compared to last year during the same period. Huge stock of imported edible oil and decision of continue to import of crude edible oil at 0% also in favor of bears in the market.
