July 1, 2010

NCDEX refined soyoil futures fall on long liquidation, selling

The refined soyoil futures tumbled further on Wednesday (Jun 30) on extended long liquidation and fresh selling taking cues from weak overseas market.

Higher inventory of edible oil and uncrushed oilseeds also had a bearish impact on the market.

The active July contract NCDEX refined soyoil future tested an intraday low of INR443.10 (US$9.5) per 10 kg from a high of INR447.30 (US$9.6) per 10 kg and settled at INR444.85 per 10 kg, down 0.43%.

The refined soyoil futures forecast to trade lower during the day on account of selling pressure and taking cues from weak overseas market.

Higher inventory of edible oil and uncrushed oilseeds is likely to impact the market. Soyoil imports in the month of June are likely to be higher as the international prices are ruling at lower level and import duty on crude edible oil is zero.

According to the Solvent Extractors' Association of India, total edible oil import in May month was 539,169 tonnes against 696,625 tonnes in the same period a year ago. Soyoil import during the month was 110,150 tonnes, more than doubled from 48,102 tonnes in the same period a year back and 30% higher than April month.

The open interest in most active July contract rose by 0.08% to 61,810 tonnes from 61,760 tonnes and volume fell by 3.45% to 28,540 tonnes from 29,560 tonnes.