Refined Soyaoil Gains as the Vegetable Oil Market Faces a Significant Squeeze

Refined Soyaoil yesterday settled up by 0.1% at 1259.6 as the vegetable oil market faces a significant squeeze due to lower output. India slashed its base import tax on Crude Palm Oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions.  
 
Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1300.15 Rupees per 10 kgs.  
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 26.02% to settled at 40170 while prices up 1.2 rupees, now Refined Soya oil is getting support at 1252 and below same could see a test of 1244 levels, and resistance is now likely to be seen at 1267, a move above could see prices testing 1274.  

Trading Ideas:
# Refined Soya oil trading range for the day is 1244-1274.
# Refined soyoil gained as the vegetable oil market faces a significant squeeze due to lower output
# Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.
# India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
# At the Indore spot market in Madhya Pradesh, soyoil was steady at 1300.15 Rupees per 10 kgs.