Soy Oil Trades Down on Selling Pressure .

The refined soy oil futures traded on a positive note in early trade of Monday on extended buying interest supported by strong overseas market.

International markets were trading on a positive on bullish crop outlook on Wednesday. Higher landed price of soy oil due to increasing international price led the rise in Indian market.

Indian traders bought soy oil futures anticipating lower import of soy oil in the months ahead as Argentina crop is likely to be lower on poor weather condition.

However, towards end of the day, prices shed some of the gains on profit booking and taking cues from weak Malaysian market.

Outlook

The refined soy oil futures are expected to trade on a positive note on fresh buying supported by bullish demand outlook.

Global oil and oilseeds futures are trading on a positive note ahead of USDA monthly crop report.

Global traders are likely to buy soy futures on speculation that USDA will lower world soybean production forecast in its January month report. Bad weather condition in Latin American countries is likely to worsen world soy supply situation.

Indian traders are likely to buy futures on expectation of lower soy oil import in the months ahead. Likely crop loss in Argentina due to bad weather condition may result into lower import. India imports soy oil from Argentina.

Source : commodityonline.com