Silver market under fresh selling; Support seen at 36852
Gold market under fresh selling; Support seen at 30325
NCDEX Mustard Seed under long liquidation; Support seen at 4227
MCX Crude Palm Oil under short covering; Support seen at 594.5
NCDEX Soyabean under long liquidation
Technically Ref. Soya Oil market is under fresh selling as market has witnessed gain in open interest by 12.25% to settled at 55330 while prices down 6.8 rupees.
Now NCDEX Ref.Soya Oil is getting support at 729 and below same could see a test of 726 level, And resistance is now likely to be seen at 735, a move above could see prices testing 738.
Ref. Soya Oil on NCDEX settled down 0.92% at 730.85 tracking weakness in spot demand amid reports of higher stocks of edible oil. Higher import duty and depreciation in Indian rupee against the dollar has slow down the imports of edible oils in the country during the last three months which is shrinking the edible oil stocks in the country.
According to an official notification, government cut the base import prices of all edible oils by $2-$6 per tn. For the first fortnight of September, base import price of crude soyoil has been slashed to $711 per tn from $717 per tn.
As per the data from SEA, edible oil imports fell to 10.53 lt in July compared to 14.89 lt in the same period a year ago. Soyoil degummed imports fell by 25% to 325,325 tons compared to 468,439 tons in July.
According to Solvent Extractors Association (SEA), India’s July edible oil stocks at ports and pipelines fell 1.70 percent m-o-m to 24.75 lakh tons from 25.18 lakh tons in May 2018.
Stocks of edible oil at ports fell to 928,000 tons (CPO 250,000 tons, RBD Palmolein 160,000 tons, Degummed Soybean Oil 320,000 tons, Crude Sunflower Oil 190,000 tons and 8,000 tons of Rapeseed (Canola) Oil and about 1,547,000 tons in pipelines.
(Stocks at ports were 948,000 tons in June 2018). India is presently holding 39 days of edible oil requirement at 24.75 lakh tons compared to 40 days of requirements last month at 25.18 lakh tons.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 726-738.
–Ref. Soya Oil dropped tracking weakness in spot demand amid reports of higher stocks of edible oil.
–Higher import duty and depreciation in Indian rupee against the dollar has slow down the imports of edible oils in the country during the last three months.
–According to an official notification, government cut the base import prices of all edible oils by $2-$6 per tn.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 740.25 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
