Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 10 January 2014

Ref Soya Oil Ref. Soya oil settled up 0.57% at 676.2 on higher demand amid extended gain in the spot market. Local refineries reduced their rates for palmolein, but the response was poor. The volume was almost nil as stockists kept away. During the day, hardly 50-60 tonnes were traded. There was no direct trade at local refineries despite their cheap offerings. Oilmeal exports increased three per cent in December to 5,86,437 tonnes from 5,67,199 tonnes in the same period a year ago as demand for rapeseed meal rose significantly. Export of oilmeals in the first three quarters of this fiscal was up seven per cent at 31,67,155 tonnes against 29,58,218 tonnes in the same period a year ago. It has been a roller-coaster ride for oilmeal exports in the last three quarters. Oilmeal shipments in the first quarter were down 20 per cent due to drastic drop in export of soyameal. Edible oil imports could break a record to touch 11 million tonnes (mt) this year, on rising demand from middle class following sustained pressure on prices. This, however, is not likely to hit domestic production. This is despite the fact that crushing remains unviable due to the sustained increase in the minimum support price. In the oil year 2013-14 (November-October), domestic production is estimated to rise to 7.7 mt compared to 7 mt a year ago. At the Indore spot market in Madhya Pradesh, soyoil was steady at 680.55 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.78% to settled at 127450 while prices up 3.85 rupee, now Ref. Soya oil is getting support at 673 and below same could see a test of 669 level, And resistance is now likely to be seen at 679, a move above could see prices testing 681.