Technically Ref.Soya Oil market is under short covering as market has witnessed drop in open interest by 26.03% to settled at 21825 while prices up 3.5 rupees.
Now NCDEX Ref.Soya Oil is getting support at 1153 and below same could see a test of 1139 levels, and resistance is now likely to be seen at 1178, a move above could see prices testing 1189.
Ref.Soya Oil yesterday settled up by 0.3% at 1167.8 amid higher demand for edible oils amid winter season and lower imports of Soybean oil in the recent months.
A strong export pace of soybeans could limit the amount of supplies available to crush into soymeal and soyoil. Government of India, lowered basic import duty on edible oils.
The basic custom duty on CPO slashed from 27.5 percent to 15 percent whereas, soybean oil and sunflower oil duty is cut to 15% from 35%. The government has proposed 17.5% cess on CPO and 20% cess on crude soybean and sunflower oil, further added.
The Solvent Extractors’ Association of India has compiled the export data for export of oilmeals for the month of December 2020 and provisionally reported at 512,997 tons compared to 220,404 tons in December, 2019 i.e. more than doubled (133%).
The overall export of oilmeals during April to December 2020 recovered and provisionally reported at 2,461,696 tons compared to 1,955,276 tons during the same period of previous year i.e. up by 26%. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1184.8 Rupees per 10 kgs.
–Ref.Soya Oil trading range for the day is 1139-1189.
–Ref.Soya Oil prices gained amid higher demand for edible oils amid winter season and lower imports of Soybean oil.
–Very heavy rains remain in the forecast for Brazil’s northern soybean belt, where farmers are trying to harvest the soybean crop.
–A strong export pace of soybeans could limit the amount of supplies available to crush into soymeal and soyoil.
–At the Indore spot market in Madhya Pradesh, soyoil was steady at 1184.8 Rupees per 10 kgs.