Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 11 December 2013

Ref Soya Oil Ref. Soya oil settled down -0.38% at 709.2 tracking weakness in spot demand amid profit booking. Vanaspati Oil mills did come out to buy in bulk before the wedding seasons. Supplies are limited as farmers are holding back the crop. India's soybean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop. Soybean crushing has started picking up that may pressurize the prices to some extent. As per the data released by SEA of India, the import of vegetable oils during Nov 12-Oct 13 are higher by 5 LT vs LY to 106.8 LT. Iran's oilmeal imports from India reached 789,031 tons during April-November period this year, rose 70.90% compared to 461,687 tons imported in the same period last year, according to the data from the Solvent Extractors' Association of India. The country's oilmeal imports consisting of 315,168 tons of rapeseed meal, 346,797 tons of castor meal and 41,247 tons of soybean meal. According to a latest update from the Central Organisation for Oil Industry & Trade (COOIT), last year's soybean crop revised downward to 107.00 lakh tons from 113.40 lakh tons. In the current year, in spite of sizable increase in area under soybean, the crop is lower than last year due to extensive damage both in term of quality and quantity due to heavy rain fall during end September also early October at the time of harvesting. Technically market is under long liquidation as market has witnessed drop in open interest by -11.77% to settled at 100820 while prices down -2.7 rupee, now Ref. Soya oil is getting support at 706 and below same could see a test of 703 level, And resistance is now likely to be seen at 714, a move above could see prices testing 719.