Refined Soy Oil To Edge Upwards

The NCDEX Refined soy oil futures are likely to trade in a mixed manner in today’s session, after a buoyant movement in the last few days. Amid the overnight global cues, Chicago Board of Trade soybean futures ended lower Tuesday, falling on profit taking from speculative funds amid the absence of fresh supportive news.

However, Soy product futures ended mixed, with Soymeal retreating on profit-taking pressure in unison with declines in soybeans. January Soymeal settled $2.20 lower at $322.50 per short ton. January soyoil finished 4 points higher at 46.21 cents per pound.

However, today the sentiments have turned slightly positive with crude oil futures showing a moderate pullback. The soy oil futures are quoting up 12 points for the January contract on CBOT while the CPO futures are up RM 20 for the benchmark delivery on BMDE.

Outlook
We may expect the NCDEX January soy oil futures to open a tad higher today though the recent decline in the open interest is indicative that a large number of traders have unwound their long open positions as the contract ran to life time highs in the current week. A test of Rs 544 is possible for NCDEX January is today’s session though fresh longs can be avoided given the fact that the prices are lingering around life time highs.