Commodity Trading Tips for Ref.Soya Oil by KediaCommodity

Ajay Kumar Kedia 9 December 2013

Ref-Soya-Oil Ref.Soya Oil settled down -0.18% at 709.3 due to drop in overseas edible oil prices and as demand was moderate in local spot markets. New soymeal export orders have slowed down. Oil mills and stockists are not aggressively buying like last month. The local edible oils had eased in last few days amid a good start for the rabi sowing and ideas that the soybean arrivals would increase in local mandies in near term. Worries on the standing crop in MP and Gujarat had boosted the sentiments in last few days. Abundant supplies and good production in the international market is pressurizing the market. There is moderate demand for soybeans, but even that demand could not be met. Supply is limited as farmers are holding back the crop. 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. As per the data released by SEA of India, the import of vegetable oils during Nov 12-Oct 13 are higher by 5 LT vs LY to 106.8 LT. End-season inventories are expected to recover by 13%, supported by improved availabilities in the major exporters. As buying interest from China strengthens, world trade is forecast to expand by 10% year-on-year basis. At the Indore spot market in Madhya Pradesh, soyoil was steady at 700.7 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.41% to settled at 113430 while prices down -1.3 rupee, now Ref.Soya oil is getting support at 707 and below same could see a test of 705 level, And resistance is now likely to be seen at 711, a move above could see prices testing 713.