Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 5% to settled at 26775 while prices up 8.1 rupees.
Now NCDEX Ref. Soya Oil is getting support at 1242 and below same could see a test of 1236 levels, and resistance is now likely to be seen at 1253, a move above could see prices testing 1258.
Ref. Soya Oil yesterday settled up by 0.65% at 1247 on some low level buying after prices dropped as India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world’s biggest vegetable oil buyer tries to cool near-record price rises.
The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers.
The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions.
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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1281.25 Rupees per 10 kgs.
–Ref. Soya Oil trading range for the day is 1236-1258.
–Ref. Soya Oil gained on some low level buying after prices dropped as India cuts base import tax on crude vegetable oil imports to zero %
–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 1281.25 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online