NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 772

Technically Ref. Soya Oil market is under fresh selling as market has witnessed gain in open interest by 1.5% to settled at 52060 while prices down 1.2 rupees.

Now NCDEX Ref. Soya Oil is getting support at 767 and below same could see a test of 765 level, And resistance is now likely to be seen at 772, a move above could see prices testing 775.

Ref. Soya Oil on NCDEX settled down by 0.16% at 769 on reports of higher crushing by plants during October-January. USDA in its latest monthly update forecast India soyoil production at 16.92 lakh tonnes, up 2.2% on month and 22.1% on year.

Soyoil imports are unchanged for month at 34 lakh tonnes, but up 14% on year. Consumption pegged at 49.5 lakh tonnes, up 7% compared to last year. The export of oilmeals during January 2019, provisionally reported at 283,850 tons compared to 269,668 tons in January 2018.

The overall export during April 2018 to January 2019 is reported at 2,692,452 tons compared to 2,516,657 tons during the same period of last year i.e. up by 7%. The export of rapeseed meal is sharply increased to 897,537 (486,917) tons in first ten months, mainly exported to South Korea, Vietnam and Thailand.

The export of rapeseed meal and soybean meal to China is unlikely to resume during current financial year as procedure for registration with MoA, China is too cumbersome, lengthy and time consuming to complete all formalities.

Iranian market has opened up for Indian soybean meal. The National Oilseed Processors Association (NOPA), whose members account for 95 percent of all U.S. soy crushing, estimated that its members processed 166.959 million bushels of soybeans in November, compared with a record-high 172.346 million in October.  At the Indore spot market in Madhya Pradesh, soyoil was steady at 783.35 Rupees per 10 kgs.

Trading Ideas:
–Ref. Soya Oil trading range for the day is 765-775.
–Ref. Soya Oil prices dropped on reports of higher crushing by plants during October-January.
–USDA in its latest monthly update forecast India soyoil production at 16.92 lakh tonnes, up 2.2% on month and 22.1% on year.
–Soyoil imports are unchanged for month at 34 lakh tonnes, but up 14% on year. Consumption pegged at 49.5 lakh tonnes, up 7% compared to last year.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 783.35 Rupees per 10 kgs.

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