Commodity Trading Tips for Ref. Soya oil by Kedia Commodity

Ref. Soya oil yesterday settled down -0.56% at 644.2 on weak demand in spot markets and higher sown area under oilseeds. In the spot market edible oil demand was moderate. Some traders are on the sidelines due to a sharp drop in overseas palm oil prices. Indian farmers have grown soybeans on 11.88 million hectares as of Aug. 1, compared with 10.31 million hectares a year earlier. As per the SEA of India data, the export of oilmeals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012 i. e. up by 12%. However, the total export of oilmeals during April-June 2013 is down and reported at 850,951 tons compared to 1,074,034 tons during the same period of last year i. e. down by 21%. During April-June Soybean meal is drastically reduced to 409,507 tons from 637,407 tons. As per the latest release from Solvent Extractors' Association of India, the export of oilmeals during July 2013 is reported at 1.77 lakh tonnes compared to 2.82 lakh tonnes in July 2012 i. e. down by 37%. The total export ofoilmeals during April-July 2013 is down and reported at 10.27 lakh tonnes compared to 13.56 lakh tonnes during the same period of last year i. e. down by 24%. The demand for soybeans from local solvent extractors is steady ahead of the festive season. However, the local prices have not gained much in last one year on a persistent up tick in imported edible oil. At the Indore spot market in Madhya Pradesh, soyoil was steady at 672 rupees per 10 kgs. Now Ref. Soya oil is getting support at 641.6 and below same could see a test of 639 level, And resistance is now likely to be seen at 647, a move above could see prices testing 649.8.

Trading Ideas:

Ref. Soya oil trading range for the day is 640-650.

Ref. Soya oil dropped on weak demand in spot markets and higher sown area under oilseeds.

Indian farmers have grown soybeans on 11.88 million hectares compared with
10.31 million hectares a year earlier

The export of oilmeals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012

At the Indore spot market in Madhya Pradesh, soyoil was steady at 672.3 rupees per 10 kgs.