Ref soyoil settled flat tracking weakness in spot demand as demand is low as buyers are preferring other vegetable oils which are much cheaper than soyoil. The Finance Ministry notified the hike in import duty on refined edible oils to 10 per cent from 7.5 per cent earlier. The increase will widen the duty differential between crude oil and refined oils to 7.5 per cent from 5 per cent now. The refining industry had been demanding a hike in import duty on refined oils as a lower duty differential of 5 per cent had led to surge in imports of refined oils in the recent past. In 2013, imports of refined oils shot up by 52 per cent compared with 2012 on account of lower duty differential. Refined oils accounted for 29 per cent of the 8.34 million tonnes (mt) of edible oil imported into the country last year. Domestic refiners believe that the latest duty hike on refined oils is unlikely to benefit them. India's soymeal exports may fall short of forecast 4 million tons in the oil year on higher price of soybean. Edible oil imports surged to 1.05 million tons in December compared to 883,489 tons for the same period year ago, data release from the Solvent Extractors Association (SEA) of India. At the Indore spot market in Madhya Pradesh, soyoil was steady at 696.55 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -5.82% to settled at 90130 while prices up 0.25 rupee, now Ref. Soya oil is getting support at 682 and below same could see a test of 680 level, And resistance is now likely to be seen at 686, a move above could see prices testing
688.

Trading Ideas:

Ref. Soya oil trading range for the day is 679-689.

Ref soyoil settled flat tracking weakness in spot demand as demand is low as buyers are preferring other vegetable oils.

The Finance Ministry notified the hike in import duty on refined edible oils to 10 per cent from 7.5 per cent earlier.

The increase will widen the duty differential between crude oil and refined oils to 7.5 per cent from 5 per cent now.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 696.55 rupees per 10 kgs.