24/02/2011 (Commodity Online) - The refined soya oil futures witnessed a positive trend in early trade of Tuesday on extended short covering.

Positive trend in overseas market also supported the Indian market. However, in later part of the day, prices retraced from morning gains and end in red on emergence of fresh selling.

Turning of international market into negative territory also had a bearish impact on the market. Domestic traders sold oil futures anticipating slash in import duty on refined oils by the central government.

Outlook

The refined soya oil futures are projected to trade on a weaker note on extended selling pressure.

There has been news of slashing import duty on refined oils, which might exert pressure on the oil market. Sluggish demand for the produce in the spot market is likely to exert pressure on the market.

Traders and investors are away from active buying on fear of likely government intervention. To control higher food inflation, central government may announce some measures in the Budget.

Harvesting of Rabi oilseeds is on full-swing, which might exert pressure on the market. Indian market is likely to move in line with weak international market.

CBOT soya oil futures ended down by 4.4% on strong selling pressure on speculation that ongoing political unrest in Middle East will dampen the demand for commodities. BMD palm oil futures are trading lower tracking weak CBOT market.