Technically Ref. Soya Oil market is under long liquidation as market has witnessed drop in open interest by 3.66% to settled at 25800 while prices down 10.1 rupees.
Now NCDEX Ref. Soya Oil is getting support at 808 and below same could see a test of 802 levels, and resistance is now likely to be seen at 824, a move above could see prices testing 834.
Ref.Soyaoil yesterday settled down by 1.22% at 814.5 on profit booking tracking weakness in soyabean prices after prices gains as India is considering raising import taxes on edible oils as the country seeks to become self-reliant by boosting local oilseed production with the help of tax revenues, two government and two industry officials told.
"We're considering a proposal to increase some tax on edible oil. If we do decide to the funds would be used to increase the production in the country," a government official said. Another government official and an industry source said the tax could be raised by 5%, but that a decision had not yet been taken.
India currently levies 37.5% and 45% import tax respectively on crude and refined palm oil. Vegetable oil imports are likely to surge from June onwards as New Delhi eases coronavirus curbs, the head of a trading body said.
India's vegetable oil imports in June could rise to 1.14 million tonnes, up from an average of 865,000 tonnes during April-May, as New Delhi eases coronavirus curbs, the Indian Vegetable Oils Producers' Association (IVPA) said.
U.S. soyoil stocks at the end of April were projected to jump to 2.532 billion lbs, from 2.328 billion lbs at the end of March. If realized, it would be the largest end-of-month soyoil supply in two years.
--Ref. Soya Oil trading range for the day is 802-834.
--Ref. Soya Oil dropped on profit booking tracking weakness in soyabean prices after prices gains as India is considering raising import taxes on edible oils.
--India recorded a 23-per cent rise in oilmeal exports in May, as compared to the same month last year.
--India’s May edible oil imports fell 4.014 percent y-o-y to 7.07 lakh tons from 11.81 lakh tons in May 2019.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 835.35 Rupees per 10 kgs.
Courtesy: Kedia Commodities