Commodity Trading Tips for Ref Soyaoil by KediaCommodity

Ajay Kumar Kedia 22 May 2013

Ref-Soya-Oil Ref Soyaoil yesterday traded with the positive node and settled 0.39% up at 702 on strong spot demand from processors ahead of Ramadan. Edible oil processors are building up stocks ahead of Ramadan, the Muslim holy month that starts early in July, when communal feasting typically drives up consumption. In near future the availability of edible oil may improve due to imported oil that may not allow prices to move up significantly. As per the SEA of India report, the import of vegetable oils during April 2013 is reported at 654,827 tons compared to 925,334 tons in April 2012, consisting of 641,327 tons of edible oils and 13,500 tons of non-edible oils i.e. down by 29.23%. However, overall import of vegetable oils during Nov.’12 to Apr.’13 is reported at 5,279,505 tons compared to 4,714,963 i.e. up by 11.97%. The millers in local mandies have reported the negative crushing margin due to higher prices of domestic soyabean in local mandies. Millers also reported that the imported oil is currently available at much lower rates. Therefore, the crushing margins of soyabean decreased by almost Rs 15-20 per quintal in the last one month. Moreover, weak export demand of soyameal is also negative factor for soyabean market. As per the latest release from Solvent Extractors' Association of India ( SEA of India ), the total exports of soyameal during April 2013 stood at 0.99 lakh tonnes compared to 3.13 lakh tonnes in April 2012 i.e. down by 68.37%. At the Indore spot market soyoil edged down -0.85 rupees to 725.3 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 696.8 after opening at 696.8, and finally settled at 702. For today's session market is looking to take support at 698.1, a break below could see a test of 694.2 and where as resistance is now likely to be seen at 704.6, a move above could see prices testing 707.2.