NCDEX Ref Soya Oil market under long liquidation; Support seen at 649
Commodity Online | October 14 2016
UPDATED 14:30:20 IST

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Ref Soya Oil on NCDEX settled down by -0.53% at 651.8 tracking weakness in spot demand on hope of higher supply. Prices of oil were under pressure on oversupply woes following reports of bumper soybean output this year. Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year. For the first half of the current financial year, cumulative shipments were down 44 per cent at 4,21,741 tonnes over the year-ago period on account of lower availability of seeds for crushing and continued disparity in prices in international markets, the Solvent Extractors Association of India said in a statement.

April-September shipments to South Korea, the largest buyer of Indian meal, were reported at 329,464 tonnes — 32 per cent lower than the 481,827 tonnes in corresponding period last year. Similarly, exports to Vietnam also registered a sharp decrease of 66 per cent at 51,823 tonnes during the first half this year compared with 154,940 tonnes in the corresponding period last year. US oilseeds processors have crushed 4.219 million tonnes (140.6 million bushel) of soybean during August 2016 which is down from 4.337 million tonnes during the corresponding period last year and down from 4.604 million tonnes processed in July 2016.

The crushing is lightly lower than the average of 4.231 million tonnes, reported by USDA. At the Indore spot market in Madhya Pradesh, soyoil was steady at 647.5 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -6.46% to settled at 55490 while prices down -3.45 rupee, now Ref Soya oil is getting support at 649 and below same could see a test of 647 level, and resistance is now likely to be seen at 654, a move above could see prices testing 657.

Trading Ideas:
--Ref Soya Oil trading range for the day is 647-657.
--Ref Soy Oil prices ended with losses tracking weakness in spot demand on hope of higher supply.
--Prices of oil were under pressure on oversupply woes following reports of bumper soybean output this year.
--Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 647.5 rupees per 10 kgs.

Courtesy: Kedia Commodities

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