Commodity Trading Tips for Ref Soya oil by KediaCommodity

Ajay Kumar Kedia 2 June 2014

Ref Soya Oil Ref. Soya oil settled down -0.66% at 657 tracking weakness in spot demand and overseas prices. India 2013-14 soybean output fell to 11.94 million ton from 14.66 million ton a year ago as untimely rains in Madhya Pradesh hit the crop. Reports of Govt thinking of measures to control Food Inflation kept further pressure on the prices. Supplies are on the rise coupled with good sowing progress reports in US. In domestic market, low availability of good quality seeds for sowing too could support the market sentiments to some extent. Similar would be the impact if Monsoon progress turns out to be unfavorable later this week. India's vegetable oils import rose by 27% to 8.32 lakh tonne in April this year on account of sharp increase in shipment of crude palm oil (CPO) and crude soft oils, industry body SEA said. Vegetable oils import stood at 6.54 lakh tonne in the same month of the previous year, it said in a statement. India meets about 60% of its annual vegetable oil demand of 17-18 million tonne via imports. Palm oils make up 80% of the country's total vegetable oil imports. India soybean output estimates were slashed to 12.45 million ton in 2013-14 against 14.67 million ton in 2012-13, the Ministry of Agriculture in its second advance estimates. Supplies of the bean in the domestic market as the markets has entered off-season period for the bean. At the Indore spot market in Madhya Pradesh, soyoil was steady at 685.9 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 8.48% to settled at 175930 while prices down -4.35 rupee, now Ref. Soya oil is getting support at 653 and below same could see a test of 649 level, And resistance is now likely to be seen at 664, a move above could see prices testing 671.