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Saturday, October 23, 2021

NCDEX Ref. Soya Oil under short covering; Support seen at 1321

Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 1.89% to settled at while prices up 5.7 rupees.

Now NCDEX Ref. Soya Oil is getting support at 1321 and below same could see a test of 1313 levels, and resistance is now likely to be seen at 1334, a move above could see prices testing 1339.

Ref. Soya Oil yesterday settled up by 0.43% at 1328.2 on short covering after prices dropped as import of edible oil has increased due to reduction in duty, which creating pressure on prices.

Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively.

Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S.

Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season.

India’s vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors’ Association of India (SEA) said.

Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year’s 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference.

India’s export of oilmeal, used as animal feed, declined 4 percent to 1,64,831 tonne in August from the year-ago period, in view of domestic shortage of the key oilmeal products. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1334.2 Rupees per 10 kgs.

Trading Ideas:
–Ref. Soya Oil trading range for the day is 1313-1339.
–Ref. Soya Oil gained on short covering after prices dropped as import of edible oil has increased due to reduction in duty
–Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.
–India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.05 Rupees per 10 kgs.

Courtesy: Kedia Commodities

Source: Comodity Online

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