Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 13 May 2014

Ref-Soya-Oil Ref.Soya Oil settled down -0.14% at 695.5 on late profit booking after prices gained tracking bullish sentiments in soybean complex and expectations of improved demand. The country’s vegetable oil imports fell 6 per cent to 8.35 lakh tonnes in March due to a continuous fall in the shipment of palm oil, industry body SEA said. Vegetable oil imports stood at 8.89 lakh tonnes in the same month of the previous year, it said in a statement. India meets about 60 per cent of its annual vegetable oil demand of 17-18 million tonnes via imports. Palm oil makes up 80 per cent of the country’s total vegetable oil imports. “Indian refiners prefer to import crude soft oils over crude palm oil (CPO), which reflected in the pattern of imports in the last few months,” Solvent Extractors Association (SEA) said. Export of oilmeals during April 2014 is reported at 236,835 tons, up by 20% compared to 197,554 tons in April 2013, as per report compiled by Solvent Extractors’ Association of India (SEA). The export of Soybean Meal drastically reduced in April 2014 due to high price of soybean lead to disparity in crushing and export. Oilmeal import by Iran from India during April 2014 is reported at 57,780 tons compared to 67,576 tons last year consisting of 35,400 tons of soybean meal and 22,280 tons of soybean meal. At the Indore spot market in Madhya Pradesh, soyoil was steady at 722.2 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.85% to settled at 152620 while prices down -1 rupee, now Ref.Soya oil is getting support at 692 and below same could see a test of 688 level, And resistance is now likely to be seen at 700, a move above could see prices testing 704.