July 9, 2010
NCDEX refined soyoil futures limited by Indian fundamentals
NCDEX refined soyoil futures traded on a positive note in the early hours of Wednesday (July 7) on extended short covering and taking cues from firm overseas market, but ended on a negative note.
However, Indian fundamental factors limited the gains and prices ended on a negative note. Lack of buying interest and higher inventory in ports added bearish strength to the market. The weakness in soy market extended to soyoil futures also.
The active July contract RSO futures tested an intraday low of INR443.65 (US$9.48) per 10 kg from a high of INR445.5 (US$9.53) per 10 kg and settled at INR444.5 (US$9.51) per 10 kg, down 0.1%.
The refined soyoil futures are expected to show a positive opening reacting to strong international market. Sharp rise in crude oil prices led the CBOT soy futures to surge by nearly 3% yesterday (July 8).
Lower crop rating for soy also supported the rise. However, Indian market might take reverse direction in later hours of the day tracking weak domestic fundamentals. India is having edible oil stock of 1.07 million tonnes in ports, which is likely to limit the gains.
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. The spot soyoil price is quoting at INR415 (US$8.88) per 10 kg.
