Commodity Trading Tips for Ref Soyaoil by KediaCommodity

Ajay Kumar Kedia 26 February 2013

Ref-Soya-Oil Ref Soyaoil yesterday traded with the negative node and settled -0.19% down at 697.6 following a sharp drop in Malaysian palm oil prices and sluggish demand in local spot markets. A strong rupee makes edible oil imports cheaper but trims returns of oilmeal exporters. Demand for oilseeds and soyoil in spot markets is weak. Buyers are cautious due to record high imports of edible oil in January and a strong rupee. India's vegetable oil imports soared 27.4 percent from a month earlier to hit an all-time high in January on record purchases of cheap palm oil from Southeast Asia. As per the Industry sources (SEA of India), the total edible oil import has remained at 11.32 LT vs 6.47 LT seen during same period last year. The import of vegetable oils during January 2013 is reported at 1,157,130 tons. January 2013 imports consisting of 1,132,631 tons of edible oils and 24,499 tons on non-edible oils compared to 659,979 tons in January 2012 i.e. up by 75% The overall import of vegetable oils during Nov.’12 to Jan.’13 is reported at 2,766,088 tons compared to 2,185,254 i.e. up by 26.58%. (SEA of India) In India, higher imports are likely to ease supply in near future. At the Indore spot market soyoil edged down -7.2 rupees to 713.1 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 694.15 after opening at 696.6, and finally settled at 697.6. For today's session market is looking to take support at 694.5, a break below could see a test of 691.5 and where as resistance is now likely to be seen at 700.3, a move above could see prices testing 703.