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Technically Ref. Soya Oil market is under fresh buying as market has witnessed gain in open interest by 7.84% to settled at 21320 while prices up 2.55 rupees.
Now NCDEX Ref. Soya Oil is getting support at 745 and below same could see a test of 741 level, And resistance is now likely to be seen at 751, a move above could see prices testing 753.
Ref. Soya Oil on NCDEX settled up 0.34% at 748.3 supported by higher import duty, weaker rupees and improving physical demand. The Soybean Processors Association of India’s (SOPA) said that soymeal export of India is likely to jump as much as 70% in 2018/19 from a year ago, on the back of expected purchases from the world’s biggest soybean buyer China.
Depreciation in the rupee and a jump in soybean output will help India gain market share in China, which is looking for new suppliers after imposing tariffs on key US farm commodities as part of a Sino-US trade row.
SOPA further said the additional demand could lift the south Asian country’s soymeal exports in the new marketing season starting from October to 2.5 million tonnes to 3 million tonnes from this year’s 1.75 million tonnes.
Bangladesh, Vietnam and Japan are the key traditional buyers of Indian soymeal. According to an official notification, government increase base import prices of all edible oils. For the second fortnight of September, base import price of crude soyoil increase to $714 per tn from $711 per tn.
As per the data from SEA, import of vegetable (cooking) oils in August jumped to 15.12 lakh tonnes from 11.19 lakh tonnes in July, as pipelines were dried up due to lesser import during June and July 2018. Soyoil degummed imports also increase by 7.7% to 312,049 tons compared to 249,746tons in August.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 741-753.
–Ref. Soya Oil gained supported by higher import duty, weaker rupees and improving physical demand.
–SOPA said that soymeal export of India is likely to jump as much as 70% in 2018/19 from a year ago, on the back of expected purchases from China.
–further said the additional demand could lift the south Asian country’s soymeal exports in the new marketing season starting from October to 3 million tonnes.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 746 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
