NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 775
Commodity Online | May 26 2020
UPDATED 11:10:28 IST

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Technically Ref. Soya Oil  market is under fresh selling as market has witnessed gain in open interest by 1.67% to settled at 27410 while prices down 6 rupees.

Now NCDEX Ref. Soya Oil is getting support at 769 and below same could see a test of 766 levels, and resistance is now likely to be seen at 775, a move above could see prices testing 778.

Ref. Soya Oil yesterday settled down by 0.77% at 772.2 on profit booking after prices gained as customs duty hike on edible oil imports perking up prices.

Further downside seen limited due to insufficient stocks in physical markets following tepid imports and rising demand.

India's oilmeal exports dropped 60% in April from a year earlier, as higher government-set oilseed prices made New Delhi's overseas shipments uncompetitive.

India sold 102,001 tonnes of oilmeal on the world market in April 2020, the start of the 2020-21 fiscal year, the Solvent Extractors' Association of India said in a statement.

Demand for veg oil may fall further in the 2nd half of 2020 due to disruptions in economic activities caused by novel coronavirus.

The disruption caused by novel coronavirus has already hit demand for veg oil. According to Solvent Extractors Association (SEA), India’s April edible oil imports fell 34.11 percent y-o-y to 7.90 lakh tons from 11.99 lakh tons in April 2019.

Soy oil imports fell 23.70 percent in Apr y-o-y to 1.90 lakh tons from 2.49 lakh tons in Apr 2019. Rapeseed (canola) oil imports in Apr was 0.27 lakh tons compared to zero imports in Apr 2019.

India's edible oil imports fell 32% on year to 941,219 tn in March, the Solvent Extractors' Association of India said. U.S. soyoil stocks at the end of February were projected to slip to 2.270 billion lbs.

Trading Ideas:
--Ref. Soya Oil trading range for the day is 766-778.
--Ref. Soya Oil dropped on profit booking after prices gained as customs duty hike on edible oil imports perking up prices.
--India's oilmeal exports dropped 60% in April from a year earlier
--April edible oil imports fell 34.11 percent y-o-y to 7.90 lakh tons from 11.99 lakh tons in April 2019.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 798.4 Rupees per 10 kgs.

Courtesy: Kedia Commodities

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