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June 21, 2010
CBOT refined soyoil futures gain on short covering
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July refined soyoil futures ended in green on account of short covering and some fresh buying at lower levels.
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Lower import of edible soyoil in the month of May was bullish. CBOT July soyoil futures ended lower at 37.92 cents/pound on Friday (June 18), down 0.13 cents/pound as compared to previous close.
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In the month of May 2010, India imported edible oil to 539,159 tonnes, down 22% as compared to last year during the same period. In the first seven months of edible oil marketing year (November 2009 to May 2010), India imported 46,28,859 tonnes, down 3.38% as compared to last year during the same period.
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Spread between NCDEX & MCX July refined soyoil contracts is INR1.30 (US$0.03) against previous day of INR1.00 (US$0.022) per 10 Kg.
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Prices closed above its 10 day & below its 20 day Exponential Moving Average (EMA), which indicates mixed market sentiments. 14-Day Relative Strength Index (RSI) is at 44.13, which is in neutral zone.
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Refined soyoil futures are expected to trade lower on weakness in overseas market, ample availability of edible oil and lower demand at retail ends (for short term). In the long term perspective, huge stock of imported edible oil and decision to continue to import of crude edible oil at 0% also in favour of bears in the market.
