Commodity Trading Tips for Ref.Soya oil by Kedia Commodity

Ref.Soyaoil on NCDEX settled up by 0.53% at 651.2 on short covering after prices dropped amid higher supply in global market. However upside seen limited on demand worries as soybean crushing disparity were at Rs 600 per tons due to higher prices in last month which refrains buying activity by crushers. However, market participants expected demand in spot market to rise in coming days on account of holi festivals. India's agriculture department in second advance estimates pegged 2016-17 soybean crops at 14.125 million tons as compared to 8.570 million tons reported in the previous year. Pricse were also under pressure tracking globla cues amid higher Brazilean bena production forecast. Agrural, the govenrment agency, in its March report raised its soybean crop output for Brazil to 107 million ton as compared to 105.4 million tons reported in February. The harvesting activity is 47% completed as of Mar 2 as compared to 41% completed in the same period a year ago. India's booming edible oil imports are expected to decline or hold flat in the year to October 2017, failing to grow for the first time in six years, as near record domestic oilseed output boosts supplies, industry executives said. India, the world's biggest edible oil importer, is expected to purchase about 14 to 14.5 million tonnes of vegetable oil this year, compared with 14.5 million tonnes in 2015/16. At the Indore spot market in Madhya Pradesh, soyoil was steady at 664.7 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.24% to settled at 51640 while prices up 3.45 rupees, now Ref.Soya oil is getting support at 647 and below same could see a test of 642 level, And resistance is now likely to be seen at 656, a move above could see prices testing 660.

Trading Ideas:

Ref.Soya oil trading range for the day is 642-660.

Ref soyoil ended with losses amid subdued demand from oil crushers and higher supply in global market.

However, market participants expected demand in spot market to rise in coming days on account of holi festivals.

India's agriculture department in second advance estimates pegged 2016-17 soybean crops at 14.125 mln tns as compared to 8.570 mln tns.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 664.7 Rupees per 10 kgs.