Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 14 February 2014

Ref-Soya-Oil Ref.Soya Oil settled up 0.64% at 688 on lack of oilseed availability in the domestic market and on robust demand from US soybean. Arrivals are low in the spot market which will continue to support prices. India soymeal exports plunged 41% as extended rainfall had adverse affected crop quantity and quality which hampered arrivals and crushing. 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. India soymeal exports in January fell to 364,000 tons as compared to 620,000 tons for the same period year ago, filling from the Soybean Processors Association (SOPA) of India showed. Soybean oilmeal exports dropped 4.3% to 2.42 million tons in the Apr-Jan period compared to 2.53 million tons in the same period of previous year. During current oil year starting Oct 1, total soymeal exports slumped 8.8% to 1.54 million tons as against 1.54 million tons last year. The export of oilmeals during Apr-Dec surged by 7% to 3.16 million tons compared to 2.95 million tons during the same period of last year, data from the Solvent Extractors Association showed. Global production in the year that began Oct. 1 will rise 7.2 percent to an all-time high of 287.7 million metric tons from a year earlier, led by record harvests in Brazil, Canada, Uruguay and Ukraine, the USDA said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 689.3 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -4.13% to settled at 103660 while prices up 4.4 rupee, now Ref.Soya oil is getting support at 685 and below same could see a test of 682 level, And resistance is now likely to be seen at 690, a move above could see prices testing 692.