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NCDEX Ref. Soya Oil under fresh buying; Support seen at 755

Commodity Online 2018-10-10 10:54:29

Technically Ref. Soya Oil market is under fresh buying as market has witnessed gain in open interest by 7.85% to settled at 34070 while prices up 1.25 rupees.

Now NCDEX Ref. Soya Oil is getting support at 755 and below same could see a test of 753 level, And resistance is now likely to be seen at 760, a move above could see prices testing 763.

Ref. Soya Oil on NCDEX settled up by 0.17% at 757.45 tracking firmness in spot demand as there is consistent demand from stockists due to coming festival. Prices also seen supported by higher import duty, weaker rupees and improving physical demand.

According to an official notification, government decreases base import prices of all edible oils. For the first fortnight of October, base import price of crude soyoil cut to $701 per tn from $714 per tn.

As per the data from SEA, import of vegetable (cooking) oils in August jumped to 15.12 lakh tonnes from 11.19 lakh tonnes in July, as pipelines were dried up due to lesser import during June and July 2018.

India’s oilmeal exports for the month of September 2018 reported a decline of about 73 per cent, the provisional data released by the Solvent Extractors’ Association of India (SEA) showed.

The export of oilmeals in September 2018, provisionally reported at 81,511 tonnes as compared to 298,182 tonnes in September 2017, is down by 73 per cent. The overall export between April to September 2018 was reported at 1,403,382 tonnes compared to 1,284,788 tonnes during the same period last year, rising 9 per cent, an SEA statement said.

However, provisional data revealed a decline in exports to major destinations such as South Korea, which imported 10,037 tonnes of oilmeal in September 2018, nearly 89 per cent less as against 89,856 tonnes in September 2017. At the Indore spot market in Madhya Pradesh, soyoil was steady at 748.8 Rupees per 10 kgs.

Trading Ideas:
--Ref. Soya Oil trading range for the day is 753-763.
--Ref. Soya Oil ended with gains tracking firmness in spot demand as there is consistent demand from stockists due to coming festival.
--Prices also seen supported by higher import duty, weaker rupees and improving physical demand.
--For the first fortnight of October, base import price of crude soyoil cut to $701 per tn from $714 per tn.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 748.8 Rupees per 10 kgs.

Courtesy: Kedia Commodities