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Technically NCDEX Ref. Soya Oil is getting support at 716 and below same could see a test of 711 level, And resistance is now likely to be seen at 724, a move above could see prices testing 727.
Ref. Soya Oil on NCDEX settled up by 0.73% at 721.4 on short covering after prices dropped amid higher stocks in the domestic market and bumper soybean crop.
According to United States Department of Agriculture (USDA) November estimate, U.S 2018/19 ending stocks of soy oil is fell 9.5 percent to 1,915 million lbs from 2,116 million lbs in earlier estimate.
Opening stocks are lowered to 1,990 million lbs from 2,206 million lbs. Production of soy oil in 2018/19 is lowered to 26,315 million lbs from 26,416 million lbs in its earlier estimate. Imports in 2018/19 are kept unchanged at 300 million lbs.
Government plans to procure 44 lakh tonnes of oilseeds and pulses from farmers at MSPs in the ongoing kharif marketing season that started Oct 1. Improving physical demand and increase in steep hike in tariff value by $40 to $741 per tn for the second half of October by government is supporting prices.
Moreover, there is consistent increase in demand from stockists due to coming festivals. As per the data from SEA, import of edible (cooking) oils in Sep down at 14.22 lakh tonnes compared to 14.65 lakh tonnes in Aug.
India’s year-on-year imports of edible oil in Sep 2018 were down by 5.3 %, while the overall imports during the 11 months from Nov 2017 to Sep 2018 were down by 4.3%.
As per SOPA, soybean production in 2018/19 may highest in last 5 year at 114.8 lakh tonnes 37.8% higher than last year.At the Indore spot market in Madhya Pradesh, soyoil was steady at 731.65 Rupees per 10 kgs.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 711-727.
–Ref. Soya Oil gained on short covering after prices dropped amid higher stocks in the domestic market.
–According to USDA November estimate, U.S 2018/19 ending stocks of soy oil is fell 9.5 percent to 1,915 million lbs from 2,116 million lbs in earlier estimate.
U.S 2018/19 ending stocks of soy oil is fell 9.5 percent to 1,915 million lbs from 2,116 million lbs in earlier estimate.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 731.65 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
