NCDEX Ref Soya Oil may trade between 650-670 levels
Commodity Online | September 20 2016
UPDATED 15:40:35 IST

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Ref Soya Oil on NCDEX settled up by 1.75% at 662.95 tracking firmness in spot demand. According to USDA's weekly export sales report, exports around 26.800 million tons up noticeably from the previous week and from prior four-week average. However, higher availability of stocks in domestic market will capped the gain in soyoil prices.

U.S. soy processors crushed 2.6 percent fewer beans in August than a year ago and the pace fell below market expectations due to declines at plants in the Southwest, the National Oilseed Processors Association (NOPA) said. NOPA said its members crushed 131.822 million bushels of soybeans in August, down from 143.715 million during July. In August 2015, the NOPA crush was 135.304 million bushels. According to the data compiled by industry body Solvent Extractors Association of India (SEA), imports of vegetable oils, comprising edible and non-edible oil, stood at 13.74 LT in August 2015. However, vegetable oils import rose by 4% to 12.16 million tonnes (MT) during the first ten months of the current oil year (November-October) from 11.72 MT in the corresponding period of the previous year.

The import of RBD palmolein rose sharply to 21.96 LT during November 2015 to August 2016 from 12.57 LT replacing import of CPO (crude palm oil) and is expected to rise further in coming months. At the Indore spot market in Madhya Pradesh, soyoil was steady at 653.2 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 10.86% to settled at 64300 while prices up 11.4 rupee, now Ref Soya Oil is getting support at 656 and below same could see a test of 650 level, and resistance is now likely to be seen at 666, a move above could see prices testing 670.

Trading Ideas:
--Ref Soya Oil trading range for the day is 650-670.
--Ref Soy Oil prices ended with gains tracking firmness in spot demand.
--According to USDA's weekly export sales report, exports around 26.800 million tons up noticeably from the previous week.
--U.S. soy processors crushed 2.6 percent fewer beans in August than a year ago and the pace fell below market expectations.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 653.2 rupees per 10 kgs.

Courtesy: Kedia Commodities