Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 0.08% to settled at 26555 while prices up 24.8 rupees.
Now NCDEX Ref. Soya Oil is getting support at 1306 and below same could see a test of 1292 levels, and resistance is now likely to be seen at 1327, a move above could see prices testing 1334.
Ref. Soya Oil yesterday settled up by 1.92% at 1319.3 as 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.
Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year’s 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference.
Palm oil imports, however, could rise 8% from a year ago to 7.8 million tonnes, he said, as India allowed imports of refined palm oil and cut the import tax on crude palm oil.
India’s export of oilmeal, used as animal feed, declined 4 percent to 1,64,831 tonne in August from the year-ago period, in view of domestic shortage of the key oilmeal products. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.9 Rupees per 10 kgs.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 1292-1334.
–Ref. Soya Oil prices gained as 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
–U.S. August soybean oil stock seen at 1.668 billion pounds: NOPA
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.9 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online
