Soy refined oil prices eased on profit booking as in the past fortnight market observed significant rise in prices on good buying support. Physical market also witnessed selling pressure however demand also remained firm.
Indian domestic edible oil situation remains comfortable due to increased import in the past few months. Total imports of vegetable oil surged to 641,141 tons in March as compared to 502,827 tons in the corresponding month last year.
Overall import of vegetable oil in the first five months of the oil year (November-October) rose 59 % 3,592,692 tons from 2,264,497 tons in the same period last year (Source: SEA of India).
Indian importers seem to have taken advantage of reduced import duty on edible oils. Further most of the traders believe that after Indian parliamentary elections, new government may think of re-imposing the import duty on edible oils. So despite comfortable supply situation prices have shown uptrend in prices in the past few days.
No doubt, international positive sentiments have also added to the bullish undertone of Indian market. Market may witness some dips which might be utilized as a buying opportunity. Prices are NCDEX May contract is likely to get support near 481 then 478 and resistance near 490 then 493.
Source : www.commodityonline.com