Crude Oil market under long liquidation; Support seen at 4734
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Technically Ref.Soya Oil market is under fresh buying as market has witnessed gain in open interest by 3.39% to settled at 37820 while prices up 6.2 rupees.
Now NCDEX Ref.Soya Oil is getting support at 729 and below same could see a test of 724 level, And resistance is now likely to be seen at 738, a move above could see prices testing 742.
Ref.Soya Oil on NCDEX settled up by 0.85% at 735.85 on short covering due to improved demand in coming weeks. Meanwhile lower tariff value and higher stock positions in the country is keeping price under pressure.
According to an official notification, government slashed the base import price of all edible oils in the range of $20-$36 per tn. For the first fortnight of August, the base import price of crude soyoil has been cut to $723 per tn from $743 per tn by the govt which is lowest since Jan 2016.
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Higher duty and depreciation in Indian rupee against the dollar has slow down the imports. As per the data from SEA, edible oil imports fell to 10.07 lt in June compared to 12.9 lt in the same period a year ago on lower crude oil prices.
Soyoil degummed imports fell marginally to 288,519 tons compared to 290,904 tons. Stocks of edible oil in ports and pipeline are estimated at 2.52 mt as on July 1 compared to 2.28 mt a year ago while lower than 2.66 mt in May.
As per the data from SEA, India’s vegetable oil imports during June dropped 23% to 10.4 lakh tons (lt) compared to 13.4 lt in the same period a year ago. While imports for Nov-June fell by 2.2% to 96.4 lt compared to 98.6 lt on year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 737.1 Rupees per 10 kgs.
Trading Ideas:
–Ref.Soya oil trading range for the day is 724-742.
–Ref soyoil prices ended with gained on short covering due to improved demand in coming weeks.
–Meanwhile lower tariff value and higher stock positions in the country is keeping price under pressure.
–According to an official notification, government slashed the base import price of all edible oils in the range of $20-$36 per tn.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 737.1 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
