NCDEX Soy oil futures declined on Tuesday owing to the weak domestic demand and the higher global inventories.
The supplies in the domestic markets might increase due to good imports from the Malaysian regions. Along with the higher inventories of the palm oil, good weather conditions are boosting the production prospects in palm oil.
Outlook
The NCDEX soy oil futures are expected to recover from the previous fall. Sluggish demand across the spot markets and the increasing global inventories is weighing on the futures prices.
The production prospects of the palm oil during the current year are keeping the prices under pressure. CBOT closed flat yesterday on the short covering on the previous fall. The positive trading of the crude oil prices also supported the gain in the soy oil prices.
Weakened dollar index supported the gain in soy oil price in the international market. E-CBOT and the Malaysian palm oil prices are currently trading positive which might lead the Indian market.
