Soyoil falls to new lows on selling pressure.

The refined soy oil futures made a new contract low on Monday on strong selling pressure. Indian moved in line with weak overseas market.

Malaysiain palm oil futures fell by 1.75% yesterday on reports of rise in production and slowdown in exports. Lack of buying interest and higher inventory of edible oils kept the market under pressure.

Soy oil market moved in sync with soybean market. Traders sold futures anticipating soy oil import would be higher this year.

Outlook

The refined soy oil futures are projected to trade on a negative note during the day on account of extended selling pressure.

Weakness in international edible oil market is likely to have its impact on Indian market. The demand for edible oil is poor and stocks are very high at the ports.

Soy oil imports in the month of June are likely to be higher as the international prices are ruling at lower level and import duty on crude edible oil is zero.

India’s edible oil stock is estimated at around 1.07 million tonnes in ports

Source : Commodity Online