MCX Zinc under long liquidation: Resistance seen at 223.6
NCDEX Soyabean under short covering; Support seen at 3728
MCX Copper under long liquidation; Resistance seen at 449.1
MCX Natural Gas likely to move in a range of 182.6-191.6
MCX Crude Oil under fresh buying; Support seen at 4279
Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 5.38% to settled at 26920 while prices up 5.55 rupees.
Now NCDEX Ref. Soya Oil is getting support at 729 and below same could see a test of 724 level, And resistance is now likely to be seen at 737, a move above could see prices testing 740.
Ref. Soya Oil on NCDEX settled up by 0.76% at 734.65 on short covering after prices dropped amid lower than expected demand in physical market. Government cut tariff value of crude soy oil by 24 dollar to $729 per tn for the second half of March.
According to monthly report released by SEA, soy oil import jumped by 64.7% to 2.20 lt in February compared to 1.34 lt last year same month. Overall, imports are lower by 2.31% for the period of Nov-Feb at 6.95 lt. USDA FAS in its latest GAIN report forecast India soyoil production at 17.22 lakh tonnes in 2018/19, up by 14.2% forecast by official USDA while Soyoil imports are pegged at 36 lt Vs 34 lt by USDA.
Consumption pegged at 50 lt Vs 49.5 lt by USDA. According to National Oilseed Processors Association (NOPA), members are expected to crush 3.3 % higher Soybean to 158.73 million bushel in February 2019 compared to last year record in the same month on account of profitable U.S. soy crush margins and ample supplies of beans. However, it would be lower by 7.5% from January 2019.
USDA in its latest monthly update forecast India soyoil production revised down by more than 4% to 16.20 lt, however, production is higher y/y by 16.9%. According to monthly report released by Solvent Extractors Association, crude soy oil imports down 17.3% on year to 1.86 lakh tonnes (lt) in January 2019. At the Indore spot market in Madhya Pradesh, soyoil was steady at 740.9 Rupees per 10 kgs.
–Ref. Soya Oil trading range for the day is 724-740.
–Ref. Soya gained on short covering after prices dropped amid lower than expected demand in physical market.
–Government cut tariff value of crude soy oil by 24 dollar to $729 per tn for the second half of March.
–Soy oil import jumped by 64.7% to 2.20 lt in February compared to 1.34 lt last year same month
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 740.9 Rupees per 10 kgs.
Courtesy: Kedia Commodities