Commodity Trading Tips for Ref. Soya Oil by KediaCommodity

Ajay Kumar Kedia 1 August 2014

Ref-Soya-Oil Ref.Soya Oil settled down -0.03% at 668.8 with good sowing progress in the country and overall bearishness in the global markets due to ample supplies expected in the coming season for oilseeds. Low demand and steady supplies in mandis have been noted. Soybean buyers in China are increasing imports as demand for animal feed rises and falling prices boost processing margins. China bought about 2 million metric tons of the oilseed last week after prices declined earlier this month to the lowest in almost four years. Imports in the year beginning Oct. 1 may rise 7 percent to 73 million tons. As per the latest date released by the Ministry of Agriculture, the oilseed sowing is around 38.07 lakh hectares compared to 149.82 lakh hectares. With revival of monsoon over Madhya Pradesh, Maharashtra and other states, soybean sowing has commenced in full swing. US soybean crop ratings of good to excellent condition stood at 73% for the week ended Jul 27 against 72% in the preceding week, data by United States Department of Agriculture 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.4 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 10.31% to settled at 114050 while prices down -0.2 rupee, now Ref.Soya oil is getting support at 667 and below same could see a test of 665 level, And resistance is now likely to be seen at 671, a move above could see prices testing 673.