Commodity Trading Tips for Ref.Soya Oil by KediaCommodity

Ajay Kumar Kedia 20 June 2013

Ref-Soya-Oil Ref.Soya Oil yesterday settled down -0.33% at 700.65 due to profit booking after prices rose amid improvement in export demand for soymeal. Sentiments improved further on account of a firm demand in the spot market against restricted arrivals from producing belts. Meanwhile, a firming trend in overseas markets also supported the upside. However, timely progress of the monsoon over the soybean growing regions of central India will increase production prospects for the oilseed crop by giving enough time to mature, limited the upside. As per the SOPA, Indian soymeal export during May 2013 was 0.97 Lakh tons as compared to 1.39 lakh tones in the same period of previous year showing a decrease of 29.74%. The export during April 2013 to May 2013 has been 1.98 Lakh tons as compared to 4.75 Lakh tones in the same period of previous year showing a decrease of 58.33%. Overall demand of Soybean Meal is poor by the importing nations. India's soy meal exports M/M fell 67% in April 2013, according to the Solvent Extractors' Association of India (SEA of India). US soybean crop is expected at a record 3.39 bn bushels, up from 3.015 bn harvested a year earlier, as per USDA (United States Department of Agriculture) estimates. The stock-piles is expected to rise to 265 mn bushels on 31st August 2014. At the Indore spot market in Madhya Pradesh, soyoil was steady at 716 rupees per 10 kgs. Now Ref.Soya oil is getting support at 698.9 and below same could see a test of 697.1 level, And resistance is now likely to be seen at 703.9, a move above could see prices testing 707.1.