Soyoil hits contract high on buying interest.

The refined soy oil futures made a new contract high on continued buying interest. Sharp rise in Malaysian palm oil futures led the Indian soy oil futures to test a new contract high on Thursday.

Traders bought futures anticipating oil imports would remain lower in July. Domestic traders bought soy oil futures anticipating revival in demand ahead of festival season.

Drop is edible oil import and concern of yield loss due to dry weather condition also lent support to the market.

Outlook

The refined soy oil futures are expected to advance its gains on extended buying interest. Sharp rise in CBOT soy oil futures might render support to the domestic market. Anticipation of revival in festive demand might support the soy oil futures.

Imports in the month of July and August are likely to remain low as the Indian importers may wait for crop assessment. With the rise in international edible oil prices, the landed cost is increasing.

Rising import price is also supporting the domestic oil prices in spot and futures market. The spot price is quoting at Rs.475478 per 10 kg. CBOT soy oil futures ended sharply higher taking cues from firm crude oil prices.

Source : commodityonline.com