Technically Ref.Soya Oil market is under fresh buying as market has witnessed gain in open interest by 4.5% to settled at 30525 while prices up 1.2 rupees.
Now NCDEX Ref.Soya Oil is getting support at 1179 and below same could see a test of 1174 levels, and resistance is now likely to be seen at 1187, a move above could see prices testing 1190.
Ref.Soya Oil yesterday settled up by 0.1% at 1182.4 as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks compared to last month.
The U.S raised a proposal to scale back biofuel blending mandates. The Biden administration proposed scaling back the amount of biofuels that U.S. oil refiners were required to blend into their fuel mix since the onset of the COVID-19 pandemic.
Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies. Prices came under pressure as forecasts for improving crop weather in Brazil and Argentina weighed on the market.
The U.S. soybean crush in October likely jumped to a nine-month high of 5.868 million short tons, or 195.6 million bushels, ahead of a monthly U.S. Department of Agriculture (USDA) report.
Crush estimates ranged from 194.5 million bushels to 196.3 million bushels, with a median of 195.7 million bushels. The National Oilseed Processors Association said its members, which account for about 95% of all U.S. soybean crushings, processed 183.993 million bushels in October.
Soya Oil stocks among NOPA members rose to 1.835 billion lbs at the end of the month. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1206.5 Rupees per 10 kgs.
Trading Ideas:
–Ref.Soya Oil trading range for the day is 1174-1190.
–Ref.Soya Oil gains as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks.
–The U.S raised a proposal to scale back biofuel blending mandates.
–The Maharashtra Government has decided not to put stock-limit on edible oil stocks.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 1206.5 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online