Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 3.26% to settled at while prices up 22.9 rupees.
Now NCDEX Ref. Soya Oil is getting support at 1195 and below same could see a test of 1183 levels, and resistance is now likely to be seen at 1214, a move above could see prices testing 1221.
Ref. Soya Oil yesterday settled up by 1.94% at 1205.8 on short covering as 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.
Soyoil stocks among NOPA members rose to 1.835 billion lbs at the end of the month. Rajasthan Govt imposed stocks limits on soyabean oil. Pressure seen amid broad-based selling in commodities over concerns about a new variant of the coronavirus.
The Maharashtra Government has decided not to put stock-limit on edible oil stocks after the edible oil traders made a representation before the state Food Secretary.
The state government was to decide the stock-limit of edible oil stocks but the Maharashtra Government has decided to defer the decision after a delegation of edible oil traders met with the Food and Civil Supplies Secretary and requested for a deferment.
India’s October edible oil imports fell 14.29 percent y-o- y to 10.49 lakh tons from 16.98 lakh tons in October 2020. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1212.25 Rupees per 10 kgs.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 1183-1221.
–Ref. Soya Oil gained on short covering as USDA October soybean crush seen at 195.6 mln bushels
–Rajasthan Govt imposed stocks limits on soyabean oil.
–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 1212.25 Rupees per 10 kgs
Courtesy: Kedia Commodities
Source: Comodity Online
