July 15, 2010
NCDEX refined soyoil futures hard to hold near contract highs
NCDEX refined soyoil futures are facing a tough resistance at fresh contract highs as the markets looked at a steady sowing progress and the demand thins ahead of the expiry of the near month futures next week.
NCDEX August refined soyoil futures witnessed a tremendous boost yesterday (July 14), rallying by nearly INR7 (US$0.15) in intraday moves as the June vegoil imports fell 6.2% from year earlier to 732,232 tonnes.
The overnight global cues were strong today (July 15) with CBOT soy up 0.7%. The CPO futures in Malaysia also surged above MYR2,400 (US$749.2) per tonne and currently traded at MYR 2396 per tonne, up MYR15 (US$4.68) per tonne from the previous close for the September delivery. Local futures tested a contract high of INR463.15 (US$9.92) per 10 kg and ended at INR461.15 (US$9.88), up INR5.25 (US$0.11) per 10 kg on the day.
The counter failed to move above INR463 (US$9.92) today (July 15), topping out at these levels, currently traded at INR461 (US$9.87), down INR0.15 (US$0.0032) from the previous close.
The Kharif sowing indicates that the oilseeds acreage is up around 3% compared to the last year and after a nearly 5% jump in the last one week, some selling could set in refined soy now. Watch out for a break under INR460 (US$9.85) to bring in INR457.2-458 (US$9.79-9.81) today (July 15).
