Refined Soybean Oil futures end in green on account of short covering and some fresh buying at lower levels was witnessed on Wednesday.
Gains in crude oil also provided support to bulls on bio-diesel concern.
CBOT March Soybean oil futures ended lower at 38.75 cents/pound on Wednesday, down 0.20 cents/pound as compared to previous close.
Spread between NCDEX and MCX March Ref Soy Oil contract is Rs -2.35 against previous day of Rs -2.60 per 10 Kg.
The benchmark March contract on National Board of Trade (NBOT) Exchange, soybean oil ended lower at Rs 460.50/10 Kg on Wednesday, down Rs 0.10/10 Kg as compared to previous day.
Technical Analysis
Prices closed below its 10 day & its 20 day EMA. 14-Day RSI is at 46.69, 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 lower on weak overseas market (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.
