Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 17 June 2014

Ref-Soya-Oil Ref.Soya Oil settled up 0.38% at 681.9 on fear of delay sowing process on back of weak rainfall and limited supplies in the domestic market. Prices also got support tracking upbeat global cues after the US Department of Agriculture lowered stockpiles estimates of the world's biggest bean. Framers in key oilseed growing areas across India will start planting of soybean one-week after southwest rainfall. With the forecast of untimely rainfall sowing process is expected to be delayed. Soybean oilmeal exports plunged 92% to 8,226 tons in May compared to 96,492 tons in May 2013, data from the Solvent Extractors Association (SEA) of India showed. Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year. The drop was largely due to a sharp spike in soyabean prices, leading to a delay in crushing, and lower availability of oilmeal for exports. Total oilmeal export between April-May 2014 was down 21 per cent at 390,596 tonne. Oilmeal export to Iran was down 57 per cent in the last two months at 63,115 tonne (148,234 tonne). Consignment to Iran consists of 35,500 tonne of soyabean meal and 27,615 tonne of rapeseed meal. South Korea imported 161,241 tonne as compared to 198,367 tonne, down 18 per cent, while Thailand imported 41,800 tonne of rapeseed meal and 750 tonne of soyabean meal. At the Indore spot market in Madhya Pradesh, soyoil was steady at 701.7 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.88% to settled at 164680 while prices up 2.6 rupee, now Ref.Soya oil is getting support at 677 and below same could see a test of 673 level, And resistance is now likely to be seen at 685, a move above could see prices testing 689.