Ref Soyaoil yesterday traded with the positive node and settled 0.99% up at 764.05 on reports of lower sowing of soybean as well as weakness in the Rupee. Demand is seen improving further for edible oil in the domestic as well as international markets ahead of Muslim fasting month (July 20-Aug 19). As per MPOB latest report, Malaysian palm oil output is lower by 20% at 138 lakh tn in May compared to last year, while for May ending stock are at 13 month low and down by 8.4% to 176 lakh tn compared to May 2011. Due to global economic crisis, exports are also down by 6% to 140 lakh tn. Oil prices got support in Vidarbha region of Western Maharashtr on scattered buying by Vanaspati millers influenced by a firming global trend. Trading sentiment turned better as palm oil futures gained as exports from Malaysia, the second largest grower, rose handsomely. Weak Indian Rupee and dollar and sharp rise in Madhya Pradesh soyabean oil also helped to push up prices. In addition, the price is likely to rise further on the back of upcoming festival season kick starting in June with Ramadan. Globally, the price of the commodity is high on prevailing dry spells in US, threatening the prospects of the crops and crop damages caused early this year in Argentina and Brazil. As per the data complied by the SEA of India indicates 33.2% increase in import of edible oil during first seven months of current oil year. At the Indore spot market soyoil edged up by 7.5 rupee to 752.7 rupees 10 kgs. In yesterday's trading session Ref Soyaoil has touched the low of 760.25 after opening at 760.25, and finally settled at 764.05. For today's session market is looking to take support at 759.9, a break below could see a test of 755.7 and where as resistance is now likely to be seen at 768.6, a move above could see prices testing 773.1.
REF SOYA OIL
Ref soyaoil trading range for the day is 755.72-773.12.
Ref Soyaoil settled up by 0.99% on reports of lower sowing of soybean as well as weakness in the Rupee.
Soy oil prices traded firm on poor selling against better buying support.
India's $16bl vegetable oil industry is agog with rumours of increase in custom duty on imported oil
At the Indore spot market soyoil edged up by 7.5 rupee to 752.7 rupees 10 kgs.
BUY REF. SOYA JULY ABV 765 SL 761.50 TGT 768.50-770.20-772. NCDEX