NCDEX Ref. Soya Oil under fresh buying; Resistance seen at 735

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Technically Ref. Soya market is under fresh buying as market has witnessed gain in by 3.84% to settled at 37550 while prices up 7.2 rupees.

Now NCDEX Ref. Soya Oil is getting support at 726 and below same could see a test of 721 level, And resistance is now likely to be seen at 735, a move above could see prices testing 739.

Ref. Soya Oil on NCDEX settled up 0.99% at 731.65 tracking firmness in spot demand amid reports of good seasonal demand in physical markets and lack of selling. However, upside seen limited due to higher stocks at port, expectation of higher imports due to low tariff value and stronger rupees.

In a fortnightly notification, Government cut tariff value of crude soy oil by 18 dollar to $711 per tn for the first half of April. 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 soyoil production at 17.22 lt in 2018/19, up by 14.2% forecast by official USDA while Soyoil imports are pegged at 36 lt Vs 34 lt and consumption pegged slightly higher this year at 50 lt Vs 49.5 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.

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.

Trading Ideas:
–Ref. Soya range for the day is 721-739.
–Ref. Soya gained tracking firmness in spot demand amid reports of good seasonal demand in physical markets and lack of selling.
–However, upside seen limited due to higher stocks at port, expectation of higher imports due to low tariff value and stronger rupees.
–In a fortnightly notification, Government cut tariff value of crude soy oil by 18 dollar to $711 per tn for the first half of April.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 750 Rupees per 10 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com