Fresh buying seen in Ref Soya Oil, open interest up by 1.35%
Commodity Online | June 02 2016
UPDATED 17:09:59 IST

MCX Silver under long liquidation; Resistance seen at 61260

MCX Gold under fresh selling; Support seen at 50092

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343


Ref Soya oil on NCDEX settled up by 0.18% at 658.1 on short covering after prices dropped on oversupply hope and weak demand. India's soyoil imports rallied 86.35% to 348,195 tons in April compared to 186,849 tons for the same period a year ago, data release from the Solvent Extractors Association (SEA) of India showed. Prices of oil were also down on demand worries for oil after NOPA said that US soybean crushing fell 5.79% to 147.61 million bushels on month.

As per the latest report from United States Department of Agriculture ( USDA), Global oilseed production for 2016/17 is projected at 533.8 million tons, up 2.1 percent from 2015/16.Global soybean production is projected at 324.2 million tons, up 8.3 million with gains for India, Brazil, Ukraine, and Argentina, partly offset by lower U.S. production. The Brazil soybean crop is projected at103.0 million tons, up 4.0 million on higher area and yields. India's edible oil import bill is likely to rise by 15-20 per cent this oil year (November '15-October '16), on a sharp increase in the price of crude palm oil (CPO) in global markets and a widening supply deficit.

A fall in production from local sources, and a spurt in demand on subdued prices over the past year, has widened the deficit in India. The country imported 14.5 million tonnes of vegetable oil worth Rs 60,000 crore in oil year 2014-15. At the Indore spot market in Madhya Pradesh, soy oil was steady at 640.5 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.35% to settled at 103380, now Ref Soya oil is getting support at 653 and below same could see a test of 647 level, and resistance is now likely to be seen at 662, a move above could see prices testing 665.

Trading Ideas:
--Ref Soya oil trading range for the day is 647-665.
--Ref soy oil prices ended with gains on short covering after prices dropped on oversupply hope and weak demand.
--However upside seen limited on demand worries for oil after NOPA said that US soybean crushing fell 5.79% to 147.61 million bushels on month.
--India imported 12.30 lakh tons of edible oil in April 2016 compared to 10.98 lakh tons in April 2015, higher by 12 percent y-o-y.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 640.5 rupees per 10 kgs.

Courtesy: Kedia Commodities

 
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