Refined Soya Oil May Extend Gains On NCDEX.

Indian Refined Soya Oil ended the session higher on fresh buying lead by firm global cues amid lower imports in November.

NCDEX Refined Soya Oil benchmark January contract ended the last session higher by 1.50% at Rs 602.05 per 10 kg. The contract traded in the range of Rs 604.95-594.75 and the open interest added 7.42% to 129890 tonnes, indicating fresh buying. Volume traded surged to 1,70,750 tonnes from 1,22,620 tonnes. The contract continued to close above the short term and long term EMA's, indicating short term and long term trend is firm. The 14-day RSI spurted and ended the session higher at 60.45, indicating the contract is at neutral zone.

NCDEX refined soya oil futures likely to extend the gains tracking the firm global cues and may find resistance at Rs 607 and support at Rs 597.10 per 10 kg.

Malaysian CPO futures extended the gains with the benchmark February contract on BMD is currently trading higher at MYR 3743, up MYR 21 per tonne. The E-CBOT January soya oil is currently trading at 55.36, down 0.09 cents.

U.S. soybean futures ended higher, rallying to a one-week high on broader based commodity market buying and ongoing weather concerns for Argentina crops. CBOT Jan soybeans ended 29 1/2c or 2.3% higher at $13.02 1/2 a bushel. Ongoing dryness issues in Argentina provided support, as it is a necessity for South America to raise large crops this year to meet robust global demand. Soyoil was the upside leader of the products, garnering additional support from strong global vegoil demand and fears weather issues for Malaysian and Indonesian palm oil crops will trim world vegoil supplies. CBOT January soyoil ended 1.29 cents, or 2.4%, higher at 55.45 cents per pound, and January soy meal traded $5.20, or 1.5%, higher at $342.80 a short ton.

The edible oils stock in India is estimated at 560000 tonnes as on 1 December 2010, according to the latest data from the Solvent Extractors' Association (SEA) of India. The SEA states that the stock consists of CPO (340000 tons), RBD Palmolein (70000 tons), Degummed Soybean Oil (100000 tons) and Crude Sunflower (Oil 50000) tons) and about 870000 tons in pipelines. Total stock both at ports and pipelines is estimated at 1430000 tons compared to 1450000 tons as on 1 November 2010, down by about 20000 tons compared to previous month. Lower imports are likely add bullish cues in the domestic oilseed futures and spot market.

Source : indiainfoline.com