Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 10.27% to settled at while prices up 29.6 rupees.
Now NCDEX Ref. Soya Oil is getting support at 1336 and below same could see a test of 1315 levels, and resistance is now likely to be seen at 1369, a move above could see prices testing 1381.
Ref. Soya Oil yesterday settled up by 2.23% at 1357.8 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.
Import of edible oil has increased due to reduction in duty, which creating pressure on prices. 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.
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 1345.95 Rupees per 10 kgs.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 1315-1381.
–Ref. Soya Oil gained as oilseeds output is also expected to be down a tad at 23.38 mt
–Soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively.
–India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 1345.95 Rupees per 10 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online
