June 7, 2010

Indian soyoil futures continue to weaken

India's refined soyoil futures slid lower in the early moves today (Jun 7), extending its poor form of late with the traders eying steady start to the khariff sowing and stockists opting themselves out of the markets ahead of the monsoon season.

Plenty of inventories with the crushers as well as stocks of imported edible oils at the domestic ports were instrumental in accelerating the downfall for the commodity after prices hit one-month highs near INR460 (US$9.8) per 10 kg in the last week of May.

The momentum turned bearish after the NCDEX July broke below INR455 (US$9.7) mark and the Saturday's (Jun 5) session proved to be a decisively negative one with the contract closing at INR447.20 (US$9.5) per 10 kg. The counter fell further today, as the Malaysia CPO succumbed to heavy selling pressure following the rout in crude oil prices, which slid under US$70 per barrel.