The refined soy oil futures staged a strong rally during early hours of Wednesday’s trade on speculative buying moving in unison with firm overseas market.
A rally on soybean futures after release of bullish oil meal export also provided support to the oil market.
But, towards end of the day, prices erased earlier gains on profit booking.
Outlook
The refined soy oil futures are projected to trade on a negative note during the day on fresh selling backed by bearish fundamental factors.
Higher inventory of edible oil due to heavy imports and commencement of new crushing season will add bearishness to the market. Indian market is likely to take cues from weak overseas market.
CBOT soy oil futures ended marginally lower moving in sync with soybean market but firmness in crude oil market halted prices from a steep fall.
Market participants are likely to take cautious approach ahead of USDA’s monthly crop report.
