Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 8 January 2014

Ref-Soya-Oil Ref.Soya Oil settled down -0.9% at 673.25 following losses in the overseas markets and as export demand for soymeal from India was weak due to higher prices. Indian soya prices are under selling pressure due to reports of lower export demand for higher priced soymeal. India's soymeal exports fell 10.32 percent to 451,314 tonnes in December from a month ago, a leading trade body said, as higher premiums hit overseas sales. The import of vegetable oils during September, 2013 is reported at 863,917 tons compared to 993,912 tons, year-on-year basis, down by 13%, according to Solvent Extractors Association of India (SEA). India's export of oil meals in October 2013, reported at 368,317 tons higher when compared to 122,108 tons, year-on-year basis. The export of oil meals during April-October 2013 was at 2,019,582 tons compared to 1,749,412 tons, up by 15% year-on-year basis, as per SEA data. 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 682.5 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.47% to settled at 122940 while prices down -6.1 rupee, now Ref.Soya oil is getting support at 670 and below same could see a test of 667 level, And resistance is now likely to be seen at 677, a move above could see prices testing 681.