Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 3 September 2013

Ref Soya Oil Ref. Soya oil yesterday settled down -0.79% at 679.6 on weak demand in spot markets and as the weather improved in the key oilseed-growing central and western states of the country. There were concerns over production due to excessive rainfall. Now the weather is becoming dry in Madhya Pradesh and Maharashtra, which is good for the crop. Rainfall is likely at isolated places in Madhya Pradesh and Maharashtra, the top two soybean producing states, in the next three days. India has sold 350,000 to 400,000 tonnes of new-crop soymeal for shipment between October and December on prospects of higher soybean production and a weak rupee. Soyabean cultivation took up 12.18 million hectares in India compared with 10.68 million hectares a year earlier. The Solvent Extractors' Association (SEA) of India has compiled the import data of vegetable oils (edible and non-edible) for the month of July, 2013. The import of vegetable oils during July 2013 is reported at 889,493 tons compared to 870,328 tons in July 2012 i. e. up by only 2%, consisting of 874,703 tons of edible oils and 14,790 tons of non-edible oils. The overall import of vegetable oils during Nov.'12 to July '13 is reported at 8,034,553 tons compared to 7,265,527 i. e. up by 10.58%.Edible oils are witnessing improved demand now as the festive season approaches and markets await for the fresh crop. At the Indore spot market in Madhya Pradesh, soyoil was steady at 699 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 6.26% to settled at 77390 while prices down -5.4 rupee, now Ref. Soya oil is getting support at 674.5 and below same could see a test of 669.3 level, And resistance is now likely to be seen at 685.9, a move above could see prices testing 692.1.