NCDEX Ref. Soya Oil under fresh buying; Resistance seen at 947
Commodity Online | October 16 2020
UPDATED 11:10:19 IST

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Technically Ref. Soya Oil market is under fresh buying as market has witnessed gain in open interest by 4.72% to settled at 34910 while prices up 19.3 rupees.

Now NCDEX Ref. Soya Oil is getting support at 922 and below same could see a test of 906 levels, and resistance is now likely to be seen at 947, a move above could see prices testing 956.

Ref. Soya Oil yesterday settled down by 1.37% at 929.9 on profit booking after prices gained in recent sessions due to stockpiling by top buyer China for food security measures.

The rally in sunflower oil due to a lower crop has also been making soyoil attractive to price sensitive buyers. China's stocking policy is expected to continue with fund buying and, combined with problems in Argentina's soybean crushing, could further increase prices.

Argentina's soy crushing volume is set to drop around 9.5% this year, as growers in the world's top exporter of processed soymeal and soyoil hoard beans due to unfavourable prices and taxes.

India’s edible oil imports in 2019/2020 is seen falling to 13.5 million tonnes versus 14.9 million tonnes a year ago due to the COVID-19 outbreak, the Solvent Extractors Association (SEA) of India said.

U.S. soyoil stocks at the end of August were seen dropping to 1.994 billion lbs, from 2.124 billion lbs at the end of July. Soyoil stocks estimates ranged from 1.950 billion to 2.020 billion lbs, with a median of 2.000 billion lbs.

The National Oilseed Processors Association (NOPA), whose members account for 95% of all soybeans processed in the United States, reported the August crush among its members at 165.055 million bushels, a nine-month low, and end-of-month oil stocks at 1.519 billion lbs.

Trading Ideas:
--Ref. Soya Oil trading range for the day is 908-954.
--Ref. Soya Oil prices dropped on profit booking after prices gained in recent sessions due to stockpiling by top buyer China for food security measures.
--India’s edible oil imports in 2019/20 seen falling to 13.5 million tonnes amid pandemic
--The rally in sunflower oil due to a lower crop has also been making soyoil attractive to price sensitive buyers.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 943.3 Rupees per 10 kgs.

Courtesy: Kedia Commodities

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