09/03/2011 (Commodity Online) - The refined soya oil futures trading on a weaker note on Monday on follow through selling and taking cues from weak overseas market.

International edible oil markets were trading on a weaker note due to profit selling from their previous gains. Sluggish demand for the produce in Indian market at higher level also exerted pressure on the market.

We have witnessed a strong selling pressure in Indian, which can be seen with rise in volume. Indian traders sold futures anticipating more import of oil in February and March months.

Outlook

The refined soya oil futures are forecast to trade on a negative note on extended selling pressure.

Weak trend in international market is likely to exert pressure on the market. CBOT soya oil futures ended lower moving in unison with weak soyabean futures and tracking weak crude oil market.

Forecast of beneficial rain for Argentina is adding pressure to the global market. BMD palm oil futures are trading sharply down responding overnight’s weakness in CBOT soy market and reacting to weak crude oil market.

Domestic traders are likely to sell futures anticipating decline in demand for the produce as summer season has started in India. Derivative analysis is suggesting weak trend to be continued for the day.