Commodity Trading Tips for Ref. Soyaoil by Kedia Commodity

Ref. Soyaoil on NCDEX settled up by 0.16% at 695.35 tracking firmness in spot demand. Prices of the oil were up on hope higher demand as currently, Argentina soy oil (FoB) is quoted $762 per tonnes, while Malaysian palm oil at $775 and Ukrainian sunflower oil was last quoted $760. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tons in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes. According to USDA weekly export sales report, net sales of 7,300 tons for 2016-17 down by 77% from the previous week and 72% from the prior 4-week average. As per WASDE report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month while the ending stock is estimated to be around 750,000 million tons which was 700,000 tons in Dec-16. India's oilmeal exports have recorded a sharp surge for the month of January 2017. The export of oilmeals during January 2017 has more than doubled and was reported at 165,980 tonnes compared to 71,890 tonnes, up by 131 per cent. The surge is seen as the revival of India's oilmeal exports. The overall export of oilmeals during April 2016 to January 2017 is reported at 1,335,894 tons compared to 1,300,465 tons during the same period of last year, the Solvent Extractors Association of India (SEA) noted in the latest update on oilmeal exports. At the Indore spot market in Madhya Pradesh, soyoil was steady at 709.5 Rupees per 10 kgs. Technically now Ref. Soya oil is getting support at 693 and below same could see a test of 691 level, And resistance is now likely to be seen at 697, a move above could see prices testing 699.

Trading Ideas:

# Ref. Soya oil trading range for the day is 691-699.

# Ref soyoil prices ended with gains tracking firmness in spot demand.

# India's oilmeal exports have recorded a sharp surge for the month of January 2017.

# The export of oilmeals during January 2017 has more than doubled and was reported at 165,980 tonnes compared to 71,890 tonnes.

# At the Indore spot market in Madhya Pradesh, soyoil was steady at 709.5 Rupees per 10 kgs.