Ref. Soya Oil under short covering

Ref. Soya Oil market is under short covering as market has witnessed drop in open interest by 4.21% to settled at 35530 while prices up 5.1 rupees.

Now NCDEX Ref. Soya Oil is getting support at 772 and below same could see a test of 768 level, And resistance is now likely to be seen at 779, a move above could see prices testing 782.

Ref. Soya Oil on NCDEX settled up by 0.66% at 776.25 on anticipation of improved domestic demand and higher international prices. India imported 289,000 tons soyoil during November-December 2018 as against 353,000 ton a year, showed data from Solvent Extractors Association of India (SEA).

Indian imported about 264089 tonnes of Soybean oil in month of Oct against the 341402 tonnes of prior month. In a fortnightly notification, Government increased tariff value of crude soy oil by 1 dollar to $708 per tn for the first half of January.

India’s y/y imports of crude soy oil for November down by 25.6% on year and 23% on month at 2.04 lakh tonnes. 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% higher on year. Consumption pegged at 49.5 lakh tonnes, up 7% compared to last year. U.S. soyoil stocks at the end of November were projected at 2.030 billion lbs, down slightly from stocks totaling 2.041 billion lbs a month earlier.

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 780 Rupees per 10 kgs.

Trading Ideas:
–Ref. Soya Oil trading range for the day is 768-782.
–Ref. Soya Oil prices gained on anticipation of improved domestic demand and higher international prices.
–India imported 289,000 tons soyoil during November-December 2018 as against 353,000 ton a year, showed data.
–In a fortnightly notification, Government increased tariff value of crude soy oil by 1 dollar to $708 per tn for the first half of January.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 780 Rupees per 10 kgs.

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