June 29, 2010

NCDEX refined soyoil futures gain on short covering

July refined soyoil futures ended in green on a second consecutive day on account of short covering and improved demand at retail ends on Monday (Jun 28).

The USDA's weekly soy export inspections were at 4.5 million bushels, down from 8.15 million last week. This is below the average pace of 9.7 million bushels that is needed each week to reach the USDA's current export projection for 2009/10.

The USDA's weekly export sales came in line with expectations for oil. Net oil sales were 45,500 tonnes for the current marketing year and none for the next marketing year for a total of 45,500.

Spread between NCDEX and MCX July contract is INR1.65 (US$0.036) against previous day of INR1.75 (US$0.038) per 10 Kg.

Prices closed above its 10 day and its 20 day EMA, which indicates bullish market sentiments.

14-Day RSI is at 56.16, which is in neutral zone.

Refined soyoil futures are expected to trade slightly higher on improved demand at retail ends in the short term.