Commodity Trading Tips for Ref. Soya oil by Kedia Commodity

Ajay Kumar Kedia 23 September 2013

Commodity Trading Tips for Ref. Soya oil by Kedia Commodity Ref. Soya oil settled down -0.4% at 651.8 tracking weakness in spot demand on estimates of higher oilseed production in the current season due to increased acreage. Worries over soybean crop in MP and Rajasthan and a less than satisfactory oilseeds harvest in Maharashtra have been supporting the sentiments in last few days. However, the correction in global crude oil prices and the resultant drop in Malaysia CPO are emerging as a big negative influence now. The latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds was reported at 188 lakh hectares, up 6.21% from the last year in the same time. The data suggested that the total area coverage of soybean during kharif 2013 is higher by 13% compared to corresponding period of 2012. As per the latest release from Solvent Extractors' Association of India has compiled the import data of vegetable oils (edible and non-edible) for the month of August, 2013. The import of vegetable oils during August 2013 is reported at 7.57 lakh tonnes compared to 8.89 lakh tonnes in July 2013. Import during August has decreased due to rupee volatility. The overall import of vegetable oils during Nov.'12 to Aug. '13 is reported at 87.92 lakh tons compared to 81.62 i. e. up by 7.72%. At the Indore spot market in Madhya Pradesh, soyoil was steady at 664 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.94% to settled at 69350 while prices down -2.6 rupee, now Ref. Soya oil is getting support at 650.1 and below same could see a test of 648.5 level, And resistance is now likely to be seen at 654.7, a move above could see prices testing 657.7.