Technically Ref. Soya Oil market is under long liquidation as market has witnessed drop in open interest by 10.75% to settled at 17190 while prices down 9.4 rupees.
Now NCDEX Ref. Soya Oil is getting support at 878 and below same could see a test of 873 levels, and resistance is now likely to be seen at 892, a move above could see prices testing 901.
Ref. Soya Oil yesterday settled down by 1.05% at 883.5 on profit booking after prices gained as support seen India sees sharp rise in edible oil exports at 80,765 tonnes for 2019-20, due to the refilling of depleted stocks.
India’s imports of edible oil in June were up 8% year on year, due to the refilling of depleted stocks. In a major boost for India’s oilseed sector, the country has recorded a sharp jump — nearly 54 per cent — in edible oil exports to 80,765 tonnes for 2019-20, according to government data.
India had exported 52,490 tonnes of edible oils in 2018-19. The country earned Rs. 955.51 crore during 2019-20 from the exports, which is more than Rs. 320 crore higher from Rs. 627 crore recorded in the previous year.
The rise in bulk exports is seen as a big boost to oilseed growers as it brightens the prospects for better remuneration for their oilseed crops. Edible oils are freely exportable in bulk, while mustard oil is allowed in consumer packs not exceeding 5 kg.
A SOPA official opined that “The government should impose restrictions on edible oil imports so as to balance the need-based supply. We need to incentivize export of the oil meals so that the industry retains viability and contributes to forex earnings.
Trading Ideas:
–Ref. Soya Oil trading range for the day is 873-901.
–Ref. Soya Oil dropped on profit booking after prices gained as support seen India sees sharp rise in edible oil exports
–India’s imports of edible oil in June were up 8% year on year, due to the refilling of depleted stocks.
–A SOPA official opined that “The government should impose restrictions on edible oil imports so as to balance the need-based supply.”
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 883.35 Rupees per 10 kgs.