NCDEX Mustard Seed under short covering; Support seen at 3818
MCX Crude Palm Oil under fresh selling; Support seen at 535.3
NCDEX Soyabean under fresh selling; Support seen at 3691
MCX Zinc under long liquidation; Support seen at 191.2
MCX Nickel likely to move in a range of 900.8-959.8
Technically Ref. Soya Oil market is under fresh buying as market has witnessed gain in open interest by 5.45% to settled at 47190 while prices up 1.25 rupees.
Now NCDEX Ref. Soya Oil is getting support at 738 and below same could see a test of 735 level, And resistance is now likely to be seen at 744, a move above could see prices testing 747.
Ref. Soya Oil on NCDEX settled up 0.17% at 740.95 on short covering after prices dropped amid reports of higher availability of oil from domestic crushing and hopes of cheaper imports due to weak prices in global markets.
In a fortnightly notification, Government cut tariff value of crude soy oil by 5 dollar to $753 per tn for the first half of March. USDA in its latest monthly update forecast India soyoil production revised down by more than 4% to 16.20 lt, however, production is higher y/y by 16.9%.
Soyoil imports are unchange at 34 lt, but up 14% on year. Consumption pegged at 49.5 lt, up 7% compared to last year. There are reports of lower imports and declining stock positions for crude soy oil at ports.
According to monthly report released by Solvent Extractors Association, crude soy oil imports down 17.3% on year to 1.86 lakh tonnes (lt) in January 2019. For Nov-Jan period, soy oil import volume drop 17.8%.
Moreover, stocks in the port pegged at 70,000 tonnes at the end of Jan compared to 200,000 tonnes last year. USDA in its latest monthly update forecast India soyoil production at 16.92 lakh tonnes, up 2.2% on month and 22.1% on year.
Soyoil imports are unchanged for month at 34 lakh tonnes, but up 14% on year. The National Oilseed Processors Association (NOPA), whose members account for 95 percent of all U.S. soy crushing, estimated that its members processed 166.959 million bushels of soybeans in November, compared with a record-high 172.346 million in October.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 736-746.
–Ref. Soya Oil gained on short covering after prices dropped amid reports of higher availability of oil from domestic crushing.
–USDA in its latest monthly update forecast India soyoil production revised down by more than 4% to 16.20 lt, however, production is higher y/y by 16.9%.
–According to monthly report released by SEA, crude soy oil imports down 17.3% on year to 1.86 lakh tonnes (lt) in January 2019.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 771.55 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
