13/01/2011 (Commodity Online) - The refined soy oil futures traded on a weaker note in first part of Wednesday on extended profit booking and taking cues from weak overseas market.

eCBOT soy oil and BMD palm oil futures were down on profit booking ahead of USDA report.

But, in later part of the day, prices recovered on fresh buying on anticipation of lowering world soybean production estimates by the USDA.

Outlook
The refined soy oil futures are expected to trade on a positive note on strong buying interest and supported by the rally in international market.

CBOT soy oil futures went up sharply after US forecasters trimmed world soybean production estimates. United States Department of Agriculture lowered world soybean production forecast to 255.53 million tons from 257.78 million tons projected in December.

Indian traders are likely to buy soy oil futures anticipating lower import of soy oil from Argentina due to production shortfall on bad weather condition. BMD palm oil futures are also trading higher tracking rally in CBOT soy oil market and on expectation of robust export demand.