Commodity Trading Tips for Ref Soyaoil by KediaCommodity

Ajay Kumar Kedia 2 May 2013

Ref-Soya-Oil Ref Soyaoil yesterday traded with the negative node and settled -0.71% down at 688.95 on profit booking amid weak spot demand after prices gained on robust demand due to the wedding season. Soyoil supplies are tight due to the slowdown in soybean crushing. Demand is good due to the wedding season. As per the latest WASDE report released by USDA, global oilseed production for 2012/13 is projected at 466.8 million tons, down slightly from last month as reduced soybean and sunflower seed production is mostly offset by increased rape-seed and cotton seed production. Argentina soybean production is projected at 51.5 million tons, down 1.5 million tons. Brazil soybean production estimates is kept at 83.5 MMT unchanged. In India, the export of oilmeals during February 2013 is up by 35%, however the total export of oilmeals during April 2012 to February 2013 is down by 13%, mainly due to reduced demand from overseas market. Iran has proved to be an emerging market for oil meals. Moreover, strong soyameal export demand also added some gains in the soya bean market. Traders mentioned that Indian soyameal exporters have reported strong export demand of their products in April due to strong demand from Iran. Unofficial data suggested that Indian exporters have booked the orders of around 2.50-3 lakh tonnes of soyameal so far for the April month. At the Indore spot market soyoil edged down -0.7 rupees to 739.55 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 688.4 after opening at 695.5, and finally settled at 688.95. For today's session market is looking to take support at 684.5, a break below could see a test of 680.1 and where as resistance is now likely to be seen at 697.3, a move above could see prices testing 705.7.