Commodity Trading Tips for Ref. Soya oil by Kedia Commodity

Ajay Kumar Kedia 30 July 2013

Ref Soya Oil Ref. Soya Oil yesterday settled down -0.59% at 639.1 in the line with international markets amidst slack demand. Soybean acreage stood at 110 lakh hectares across India as against 86.2 lakh hectares last year. The trading sentiment weakened further due to drop in soymeal exports orders. Meanwhile, soymeal exports during April-June 2013 period fell by almost 36% at 4.1 lakh tonnes as against 6.37 lakh tonnes in the corresponding period of last year. As per the data released by the Solvent Extractors' Association of India, imports of vegetable oils, including non-edible oils, rose 3.2% to 947591 tons in June, supported by higher sunflower and soy oil imports ahead of Ramadan. Soybean production is likely to increase 7 to 10% and expected to put further pressure on the soy oil prices to certain extent. This year, new soybean supply is expected reach market in September, a month advance, as result of early sowing. Vegetable oil imports increased by 21% in June to 9.47 lakh tonnes due to lower domestic production and rising local demand for cooking oils. Import of vegetable oils, which comprises edible and non-edible oils, rose by 12% during the November 2012 and June 2013 period at 71.45 lakh tonnes compared to 63.95 lakh tonnes in the corresponding period of previous year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 650 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -9.25% to settled at 65760 while prices down -3.8 rupee, now Ref. Soya oil is getting support at 636.2 and below same could see a test of 633.3 level, And resistance is now likely to be seen at 643.2, a move above could see prices testing 647.3.