Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 13 February 2014

Ref Soya Oil Ref. Soya oil settled up 0.21% at 683.3 tracking firmness in spot demand amid short covering. India soybean oil imports surged more than double to 53,500 tons in December compared to 21,960 tons a year ago, the data showed. The weather concerns in Brazil and Argentina will also set the tone for the movement of prices. Traders are not willing to buy at these levels in Vidharbha and MP markets. U. S. oilseed production for 2013/14 is estimated at 97.3 million tons, up 0.9 million tons from last month. Soybean production is esti-mated at 3.289 billion bushels, up 31 million bushels based on increased yields and harvested area. Soybean ending stocks for 2013/14 are projected at 150 million bushels, unchanged for last month. Soybean oil balance sheet changes include increased production on a higher crush and extraction rate, reduced imports, increased projected exports, and increased ending stocks. India's soybean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop. SOPA in its second estimates reports slashed soybean production to 12.2 tons in Kharif season 2013 compared to 12.9 tons previous estimates and 12.1 tons previous year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 687.75 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.4% to settled at 107990 while prices up 1.45 rupee, now Ref. Soya oil is getting support at 681 and below same could see a test of 679 level, And resistance is now likely to be seen at 686, a move above could see prices testing 689.