Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 30 December 2013

Ref Soya Oil Ref. Soya oil settled up 0.62% at 692.7 on higher demand amid extended gain in the spot market. Expectations the government would increase import duty on refined palm oil to support local refiners also supported prices. Since export demand is weak for soymeal, traders are cautiously buying soybeans. Indian soymeal is very expensive compared with prices in the world market. India's vegetable oils (edible & non-edible) imports reported at 944,309 tons during November this year compared to 700,371 tons in the same month last year, consisting of 927,111 tons of edible oils and 17,198 tons on non-edible oils, the latest data from the Solvent Extractors Association of India showed. India's soy meal exports jumped to 182,724 tons in October as against 49,840 tons last year. Total Oil meal exports stood at 368,317 tons in October, according to the data released by the Solvent Extractors' Association of India. Global oilseed production for 2013-14 is projected at a record 499.4 million tons, up 4.3 million from September. Higher soybean, sunflower seed, and rapeseed forecasts account for most of the change. Global soybean production is projected at 283.5 million tons, up 1.9 million as the increase for the United States more than offsets reductions for India, Canada, Russia, and Ukraine, as per USDA WASDE. At the Indore spot market in Madhya Pradesh, soyoil was steady at 695.8 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.54% to settled at 57260 while prices up 4.25 rupee, now Ref. Soya oil is getting support at 690 and below same could see a test of 688 level, And resistance is now likely to be seen at 694, a move above could see prices testing 696.