NCDEX Refined Soy oil futures are trading in red in the early moves today as weak global cues and a failure to gain much in the intraday moves in last session pulled the commodity lower in the first few minutes of trade. The futures ended with modest gains yesterday as traders cut their outstanding positions in the near month futures ahead of the expiry and firmness in the spot markets supported the sentiments.
The local spot markets have opened slightly lower and ready quotes are down by Rs 1-1.50 in most of the major trading hubs, tracking weakness in the global soybeans and soy futures. The crude oil futures have also drifted lower after making impressive gains in the last few days. This also seems to be weighing on the minds of the market participants.
The prices have been tracking the local rabi sowing progress and spot market action in the current week as the Malaysian markets are closed and no fresh triggers are being available for the Crude Palm oil prices. The recently released 2nd Advance Estimates suggested that the production of rapeseed & mustard is also expected to be higher by 0.23 million tonnes, resulting into overall production of Rabi oilseeds exceeding the last year's level by 0.22 million tonnes.
Edible oil imports declined to 8.27 lakh tonnes in January this year from 8.56 lakh tonnes in the same period in 2009, according to data released by Solvent Extractors Association (SEA). This inventory overhang is expected to weigh on the sentiments in the coming days.
Soybeans are trading lower in the electronic moves, as favorable weather in South America and continued expectations for record soybean crops continue to act as bearish factors. NCDEX Refined soy oil for March delivery failed to surpass Rs 466 in the yesterday's moves and opened lower at Rs 462 per 10 kg today. The prices edged lower immediately and currently trade at Rs 460.60, down Rs 2.40 per 10 kg or 0.52% from the previous close with 0.27% increase in the open interest. The sentiments are likely to turn bearish if Rs 460 levels give away.
