Commodity Trading Tips for Ref Soyaoil by KediaCommodity

Ref-Soya-OilRef Soyaoil yesterday traded with the positive node and settled 0.84% up at 734.3 tracking gains on overseas market and spot market demand. Demand is strong for soyoil due to winter season. Consuming industry is replacing palm oil by soyoil in northern India. India has slapped a 2.5 percent import duty on crude edible oils, a move taken to stem overseas purchases by the world's top vegetable oil buyer and protect its domestic oilseed growers. As per the data released by SEA of India, the import of vegetable oils during December 2012 is reported at 901,092 tons compared to 669,912 tons in December 2011, consisting of 875,994 tons of edible oils and 25,098 tons on non-edible oils i.e. up by 35%. The overall import of vegetable oils during Nov. & Dec. 2012 is reported at 1,601,463 tons compared to 1,525,275 i.e. up by 5%. In a recently released report by USDA, the world soy oil production is likely to increase during 2012-13 due to improved production prospects at China and Argentina. At the Indore spot market soyoil edged up 4.8 rupees to 756.75 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 728.7 after opening at 730.85, and finally settled at 734.3. For today's session market is looking to take support at 730, a break below could see a test of 725.7 and where as resistance is now likely to be seen at 737.3, a move above could see prices testing 740.3.

Trading Ideas:

Ref soyaoil trading range for the day is 725.7-740.3.

Ref soyaoil ended with gains tracking gains on overseas market and spot market demand.

Demand is strong for soyoil due to winter season.

The import of vegetable oils during December 2012 is reported at 901,092 tons

At the Indore spot market soyoil edged up by 4.8 rupee to 756.75 rupees 10 kgs.