| Date: |
31-07-2010 |
| Subject: |
Soyoil rallies on strong buying interest |
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The refined soy oil futures rallied to new contract high on Thursday on strong buying interest.
Traders bought futures anticipating good domestic demand ahead of festivals in India.
Reports of lower soy oil imports in next 2-3 months added bullish strength to the market. Indian market took cues from the firm over-seas market.
Outlook
The refined soy oil futures are projected to extend its gains on follow through buying. Strong demand from domestic traders ahead of festival season is likely to add bullish strength to the market.
We are expecting fall in soy oil imports in next 2-3 months due to higher stock level. During first eight-months of current oil year India’s soy oil imports rose 40% on year to 914,676 tons.
Rise in premium of soy oil over palm oil is likely to limit the imports. Indian market is likely to move in line with firm overseas market, which was driven by rise in crude oil prices.
Source : commodityonline.com
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