Soy oil futures traded positive on Saturday recovering from the previous losses. The projections of the higher ending stocks of the soy oil from U.S as the demand for oil is met by the Latin American countries is exerting pressure on the prices.
The stock piles of the palm oil in Malaysia are at the 16 month high due to prospective production during the current year.
Outlook
The NCDEX soy oil futures might resume the down trend for the day. The increased exports of the Malaysian palm are resulting in higher supplies in India which is creating the supply glut situation.
Palm oil exports rose 22 percent to 395,041 tons in the first 10 days of June from the same period in May. The domestic off take of the oil is also currently lower pressurising the prices. Indian soy oil prices are likely to take cues from the lower trading in the e-CBOT and the Malaysian palm oil prices.
The weakness in the crude oil prices is expected to keep pressurise on the prices in tact. The monsoon showers are supportive for the higher production of palm oil which is negative for the markets.
Reduced soybean oil used for biodiesel production, reduced projected food use of soybean oil, and lower soybean oil exports, in the USDA report increased ending stocks which is pressuring the prices globally.
