Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Ref-Soya-Oil Ref.Soya Oil settled down -0.16% at 618.1 on late profit booking after prices as support seen tracking firmness in spot demand and lower sowing in Madhya Pradesh. India's soy exports slumped to 93,000 ton during Apr-Jul from 518,000 ton a year ago due to uncertain soybean crop prospects, reports showed. Until Aug 22 soybean sowing stood at 10.9 million hectare down from 12.13 million hectare a year ago, an agriculture ministry data showed. India's 47% area of the country received deficient rains while Central India until Aug 26 received 17% below normal rains. The oilseeds area has increased to 168.28 lakh ha compared to 183.31 lakh ha of last year. Soybean area has increased to 109.09 lakh ha., which is significantly above the 5 year average of 95.7 lakh ha but still lower than last year’s high of 121.31 lakh ha. US Soybean sowing for the August is forecasted at a record 3.82 billion bushels, data by United States Department of Agriculture showed. India's soybean sowing has been completed and crop is at the flowering stage but it requires rains after 10-15 days. Soybean has been sown over an area of 10.9 million hectare until Aug 22 down from 12.13 million hectare, showed agriculture ministry data. At the Indore spot market in Madhya Pradesh, soyoil was steady at 626.35 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -15.82% to settled at 59955 while prices down -1 rupee, now Ref.Soya oil is getting support at 615 and below same could see a test of 612 level, And resistance is now likely to be seen at 624, a move above could see prices testing 630.