NCDEX Ref.Soya Oil under fresh selling; Support seen at 721

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Technically Ref.Soya Oil market is under fresh selling as market has witnessed gain in open interest by 3.57% to settled at 50440 while prices down 0.7 rupees.

Now NCDEX Ref.Soya Oil is getting support at 721 and below same could see a test of 719 level, And resistance is now likely to be seen at 725, a move above could see prices testing 727.

Ref.Soya Oil on NCDEX settled down by 0.1% at 722.35 due to higher stocks at port, expectation of higher imports due to low tariff value. Pressure also seen due to bumper production outlook of soybean for and subdued domestic buying.

In a fortnightly notification, Government cut tariff value of crude soy oil by 18 dollar to $711 per tn for the first half of . 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 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 Oil trading range for the day is 719-727.
–Ref.Soya dropped due to higher stocks at port, expectation of higher imports due to low tariff value.
–Pressure also seen due to bumper production outlook of soybean for India and subdued domestic buying.
–According to NOPA, members are expected to crush 3.3 % higher Soybean to 158.73 million bushel in February 2019.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 739.65 Rupees per 10 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com