11/02/2011 (CommodityOnline) - The refined soy oil futures broke its two days decline and rebounded on Wednesday on short covering and emergence of fresh buying.

Indian market moved in line with firm overseas market. CBOT soy oil futures were trading higher on expectation of bullish monthly crop report by USDA.

BMD palm oil futures rose to 3-year high on Wednesday supply demand mismatch and taking support from CBOT soy market.

On domestic front, traders bought futures anticipating lower import of oil due to smaller crop size in Argentina.

Outlook

The refined soy oil futures are expected to extend its positive trend on Thursday on follow through buying.

Indian market is likely to move in line with firm overseas market especially CBOT soy oil, which rose to a fresh 2 ½ year high on supply concern.

In February month crop report, USDA projected tighter world soybean supply and higher export of oil.

Chinese increasing appetite for food products including soy products amidst rise in interest rate gave underlying support to the market.

On domestic front, fresh buying might emerge on expectation of decline in import. With the lowering of soybean production in Argentina, oil imports into India are likely to be lower in the medium term.