Commodity Trading Tips for Ref.Soya Oil by KediaCommodity

Ajay Kumar Kedia 21 June 2013

Ref-Soya-Oil Ref.Soya Oil yesterday settled up 0.36% at 703.5 due to a pick-up in demand ahead of festivals. Sentiments improved further on account of a firm demand in the spot market against restricted arrivals from producing belts. Prices are likely to come down in the coming days as the monsoon is progressing well and there are expectations of higher acreage. Indian farmers are expected to increase soybean planting in 2013/14, encouraged by a rally in prices. The increase would help the world's top importer of edible oils to cap expensive overseas purchases and boost oil meal exports to Asian countries. Favorable monsoon conditions may help in increasing sown area under kharif oilseeds including soybean in the country. At international level too, the condition is better in terms of immediate supply. As per the latest USDA report, USA 2012-13 soybean ending stocks are expected to remain at 125 Million bushels which is unchanged vs May report. 2013-14 end stocks are expected to increase to 265 million bushels. 2013-14 world soybean end stock are estimated at 737 LT vs 750 LT.In international markets some upside is seen due to delay in sowing process which has supported the market sentiments. As per the SOPA, Indian soymeal export during May 2013 was 0.97 Lakh tons as compared to 1.39 lakh tones in the same period of previous year showing a decrease of 29.74%. At the Indore spot market in Madhya Pradesh, soyoil was steady at 719 rupees per 10 kgs. Now Ref.Soya oil is getting support at 702.4 and below same could see a test of 701.3 level, And resistance is now likely to be seen at 705.8, a move above could see prices testing 708.1.