Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 5 February 2014

Ref-Soya-Oil Ref.Soya Oil settled up 0.17% at 667.6 as prices were supported after the local currency weakened bolstering the prospects of improved exports of soymeal. India's soymeal exports may fall short of forecast 4 million tons in the oil year on higher price of soybean. Edible oil imports surged to 1.05 million tons in December compared to 883,489 tons for the same period year ago, data release from the SEA. Brazil's soy exports will likely set a new high for the month of February due to strong demand and early harvesting of a record crop. U.S. oilseed production for 2013/14 is estimated at 97.3 million tons, up 0.9 million tons from last month. Soybean production is estimated at 3.289 billion bushels, up 31 million bushels based on increased yields and harvested area. Soybean crush is raised 10 million bushels to 1.700 billion reflecting higher projected soybean meal exports, which partly offsets a reduction for Argentina. Soybean exports are increased 20 million bushels to 1.495 billion reflecting record shipments during the first quarter of the marketing year and strong sales through December. Soybean ending stocks for 2013/14 are projected at 150 million bushels, unchanged for last month. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 689.5 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.28% to settled at 115800 while prices up 1.15 rupee, now Ref.Soya oil is getting support at 666 and below same could see a test of 664 level, And resistance is now likely to be seen at 669, a move above could see prices testing 670.