Refined soya oil price may breach Rs 600-level soon

Written by Dhimant Bhatt | Mumbai, Mar 28 | Updated: Mar 30 2008, 04:47am hrs
Refined soya oil futures on the national exchanges may breach Rs 600-level in the next week on reports that the government may cut import duty on it next week. Also, there are some bearish expectations that USA 2008 soy plantings will be larger than expected and figures by USDA are likely to be released on Monday.

On Friday, NCDEX Refined Soya Oil (RSO) April contract was down Rs 17 to trade around Rs 611 per 10 kg over previous day on increased offerings on bearish sentiments, a trader said. Also, NCDEX soyabean April contract was down Rs 81 to trade around Rs 2,178 per quintal following weak overseas markets.

"The factors to be watched for the next week are USDA reports on soy plantings figures and expected import duty cut on soya oil by the government. NCDEX April contract price is quoting around Rs 620 per 10 kg. Soy oil declined after testing Rs 637 levels on the charts," Debjyoti Chatterjee of MAPE Group said. Refined soya oil futures also fell sharply at MCX on Friday. RSO April contract was trading down 1.50% at Rs 619.15 per 10 kg as against the previous day's closing of Rs 628.55 per 10 kg. "The market may see Rs 600-level next week," he said.

In the international markets, profit-taking hit the soya complex ahead of the release of the USDA's prospective plantings report scheduled on Monday. A rise in the minimum margin for soyaoil took effect Thursday and was seen adding some pressure, analyst said.