NCDEX Ref. Soya Oil under short covering; Resistance seen at 749
Commodity Online | April 26 2019
UPDATED 11:10:17 IST

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MCX Nickel under long liquidation; Support seen at 988.2

MCX Zinc under fresh selling; Support seen at 188.7

MCX Copper under fresh buying; Support seen at 449.8

Technically Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 13.69% to settled at 24460 while prices up 1.7 rupees.

Now NCDEX Ref. Soya Oil is getting support at 740 and below same could see a test of 735 level, And resistance is now likely to be seen at 749, a move above could see prices testing 753.

Ref. Soya Oil on NCDEX settled up by 0.23% at 745.1 due to lower level buying by stockists after prices dropped due to higher stocks at port and expectation of higher imports. In a fortnightly notification, Government cut tariff value of crude soy oil by 18 dollar to $693 per tn for the 2nd half of April.

According to monthly report released by SEA, Soyoil import jumped by 154.5% to 2.92 lt in March compared to 1.15 lt last year same month. Overall, imports are higher by 19.5 for the period of Nov-Mar at 9.88 lt.

According to monthly report released by SEA, soy oil import jumped by 64.7% to 2.20 lt in February compared to 1.34 lt last year same month. Overall, imports are lower by 2.31% for the period of Nov-Feb at 6.95 lt.

USDA FAS in its latest GAIN report forecast India soyoil production at 17.22 lakh tonnes in 2018/19, up by 14.2% forecast by official USDA while Soyoil imports are pegged at 36 lt Vs 34 lt by USDA.

According to National Oilseed Processors Association (NOPA), members are expected to crush 3.3 % higher Soybean to 158.73 million bushel in February 2019 compared to last year record in the same month on account of profitable U.S. soy crush margins and ample supplies of beans. At the Indore spot market in Madhya Pradesh, soyoil was steady at 754.4 Rupees per 10 kgs.

Trading Ideas:
--Ref. Soya Oil trading range for the day is 735-753.
--Ref. Soya Oil gained due to lower level buying by stockists after prices dropped due to higher stocks at port and expectation of higher imports.
--In a fortnightly notification, Government cut tariff value of crude soy oil by 18 dollar to $693 per tn for the 2nd half of April.
--SEA forecast soybean output at 102.43 lt in 2018/19, up more than 23% y/y.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 754.4 Rupees per 10 kgs.

Courtesy: Kedia Commodities

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