Commodity Trading Tips for Ref. Soya oil by Kedia Commodity

Ajay Kumar Kedia 31 July 2013

Commodity Trading Tips for Ref. Soya oil by Kedia Commodity Ref. Soya Oil yesterday settled up 1.2% at 647 supported by rising demand in the spot market and a firming global trend. Sentiment improved further due to a slight improvement in export demand for soyameal amid thin supplies. Rainfall has been heavy in the last couple of days in Madhya Pradesh, the main soybean producing state in central India, raising concerns that continued heavy rains could be bad for the crop. Output prospects could get hit if the heavy monsoon continues to obstruct sunshine during the initial growth stage. The soybean crop needs sufficient sunlight during the flowering and podding stages for healthy growth. Indian farmers had sown soybeans in around 12 million hectares until the week ended July 25, up 16 percent from a year earlier. There has been a good spurt in kharif oilseeds sowing with the acreage spurting by 37% to 149.82 lakh hectares. The demand for soybeans from local solvent extractors is steady ahead of the festive season. However, the local prices have not gained much in last one year on a persistent up tick in imported edible oil. Import of vegetable oils from India jumped by 12% during the November 2012 and June 2013 period at 71.45 lakh tonnes, according to a latest update from Solvent Extractor's Association. At the Indore spot market in Madhya Pradesh, soyoil was steady at 646 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -16.53% to settled at 55080 while prices up 7.65 rupee, now Ref. Soya oil is getting support at 637.4 and below same could see a test of 627.8 level, And resistance is now likely to be seen at 651.8, a move above could see prices testing 656.6.