Ref. Soya Oil yesterday settled down -0.09% at 642.9 on estimates of higher oilseed production in the current season due to increased acreage. Cautious buying is seen in the spot market due to sufficient soybean stocks in the mandis of Madhya Pradesh and better oilseed sowing adding to the pressure to the market sentiments. Soymeal prices were down as many soybean growing areas witnessed open weather. Open weather and sunlight is needed for the crop and such weather will also minimize the losses caused by rains the previous days. Also, buyers remained away due as they found prices higher and confusion about the future direction of the market. As per the data released by the Solvent Extractors' Association of India, imports of vegetable oils, including non-edible oils, rose 3.2% to 947591 tons in June, supported by higher sunflower and soy oil imports ahead of Ramadan. Vegetable oil imports increased by 21% in June to 9.47 lakh tonnes due to lower domestic production and rising local demand for cooking oils. Import of vegetable oils, which comprises edible and non-edible oils, rose by 12% during the November 2012 and June 2013 period at 71.45 lakh tonnes compared to 63.95 lakh tonnes in the corresponding period of previous year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 672 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 6.49% to settled at 49560 while prices down -0.55 rupee, now Ref. Soya oil is getting support at 638.6 and below same could see a test of 634.4 level, And resistance is now likely to be seen at 647.1, a move above could see prices testing 651.4.
Trading Ideas:
Ref. Soya oil trading range for the day is 635-651.
Ref soyoil ended with losses on estimates of higher oilseed production in the current season due to increased acreage.
Cautious buying is seen in the spot market due to sufficient soybean stocks in the mandis of Madhya Pradesh.
Soymeal prices were down as many soybean growing areas witnessed open weather.
At the Indore spot market in Madhya Pradesh, soyoil was steady at 671.65 rupees per 10 kgs.
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