Commodity Trading Tips for Ref.Soya Oil by KediaCommodity

Ref-Soya-OilRef.Soya Oil yesterday settled up 1.66% at 731.95 on thin supplies and good demand due to a festival. In spot markets, oil mills are actively buying rapeseed for the winter season. Supplies are moderate and likely to come down in the coming weeks. Soybean supplies have risen in spot markets but are lower than usual as rainfall in the last few weeks disrupted harvesting. India's soybean production in 2013/14 is likely to drop by 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop. Soy oil supply from the domestic soybean crushing will start picking up after Deepawali which can further put pressure on the prices. As per the data released by SEA of India, the import of vegetable oils during Sept., 2013 is reported at 863,917 tons compared to 993,912 tons in Sept., 2012 i.e. down by 13%. The overall import of vegetable oils during Nov.’12 to Sept. ’13 is reported at 9,656,300 tons compared to 9,156,457 i.e. up by 5.46%. As per market sources , restricted supplies of soyabean in major producing states prompted strong demand in soya oil prices in last one week. The overall decline in daily arrivals is mainly due to lower soyabean production for the current year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 727 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 11.29% to settled at 84090 while prices up 11.95 rupee, now Ref.Soya oil is getting support at 722.5 and below same could see a test of 713 level, And resistance is now likely to be seen at 737.4, a move above could see prices testing 742.8.

Trading Ideas:

Ref.Soya oil trading range for the day is 713-743.

Ref soyoil ended with gains on thin supplies and good demand due to a festival.

In spot markets, oil mills are actively buying rapeseed for the winter season.

Supplies are moderate and likely to come down in the coming weeks.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 727.05 rupees per 10 kgs.