MUMBAI (Commodity Online): A narrow range bound trade was seen in the soy oil market. However prices closed with slightly weak sentiments. Traders opine that in coming period the physical demand will continue to support the market.
In International markets, gains were seen in soy refined prices at CBOT yesterday. Today morning, gains are also seen in CPO prices at Malaysian Markets. As per the reports, Indonesia may cut palm oil maximum export duty in August to enable more exports.
In India, domestic physical market demand remains satisfactory due to start of festival season which will last till year end. Famous Industry expert Mr. Dorab Mistry has indicated that CPO market may witness weakness due to over production and burgeoning stocks with their producing countries.
As per news sources, the Indonesia's Crude Palm Oil output this year is estimated at 22.5 million tons to 23 million tons, from 21.6 million tons in 2010 quoting the statement of executive director of the Indonesian Palm Oil Producers Association (GAPKI).
Indonesian Government cuts August Palm oil export duty by 5% to 15%. ITS –Malaysia 1-25 July palm oil exports were up by 2.3% at 12.8 LT vs 12.50. As per the data released by the SEA of India the import of vegetable oils during June 2011 is reported at 8.62 lakh tons compared to 7.32 lakh tons in June 2010 i.e. up by 17.8%, consisting of 8.29 lakh tons of edible oils.
On Wednesday soy refined market is likely to trade in both directions. Slight weakness may be seen in morning, however later on prices are expected to improve.
