Ref Soyaoil yesterday traded with the negative node and settled -0.23% down at 713.5 tracking weakness in spot market demand.
Indian edible oil production is expected to decline this year due to less production of Mustard seed. Thus this deficit will be largely filled through palm oil import.
Thus traders should utilize the dips seen time to time in palm oil in making buy positions. India is expected to replace China as the world's largest Soybean Oil importer, the US Department of Agriculture said and projected India can become the third largest rice exporter by 2012.
India imported 659,979 tonnes of vegetable oils in January, down 8.5 percent from a year earlier, data released by a leading trade body showed on Feb.14.
Indian edible oil production is expected to decline this year due to less production of Mustard seed. At the Indore spot market soyoil edged up by 0.05 rupee to 714.35 rupees 10 kgs.
In yesterday's trading session Ref Soyaoil has touched the low of 712.1 after opening at 716.9, and finally settled at 713.5.
For today's session market is looking to take support at 710.5, a break below could see a test of 707.4 and where as resistance is now likely to be seen at 718.2, a move above could see prices testing 722.8.
Trading Ideas:
Ref soyaoil trading range for the day is 707.43-722.83.
Ref soya oil ended with weakness tracking weakness in spot market demand
Indian edible oil production is expected to decline this year due to less production of Mustard seed
India is expected to replace China as the world's largest Soybean Oil importer
At the Indore spot market soyoil edged up by 0.05 rupee to 714.35 rupees 10 kgs.
Courtesy: Kedia Commodities
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