Technically Ref.Soya Oil market is under fresh selling as market has witnessed gain in open interest by 7.08% to settled at 41140 while prices down 2.35 rupees.
Now NCDEX Ref.Soya Oil is getting support at 731 and below same could see a test of 729 level, And resistance is now likely to be seen at 735, a move above could see prices testing 737.
Ref.Soyaoil on NCDEX settled down by 0.32% at 731.7 amid selling pressure and lack of support due to weak demand in spot markets. Demand for soy oil remained muted in the spot markets, despite beginning of festival season.
However, report of good stocks with importers put pressure on prices. Increase in acreage of soybean and hopes of higher output may put pressure on prices. India's soybean sowing grew 10.62% to 10.95 million hectare due to favourable weather conditions and higher prices in the open market.
Stocks of edible oil in ports and pipeline are estimated at 2.52 mt as on July 1 compared to 2.28 mt a year ago while lower than 2.66 mt in May. As per the data from SEA, India's vegetable oil imports during June dropped 23% to 10.4 lakh tons (lt) compared to 13.4 lt in the same period a year ago.
While imports for Nov-June fell by 2.2% to 96.4 lt compared to 98.6 lt on year. Edible oil imports fell to 10.07 lt in June compared to 12.9 lt in the same period a year ago on lower crude oil prices.
Soyoil degummed imports fell marginally to 288,519 tons compared to 290,904 tons. For the second fortnight of July, the base import price of crude soyoil has been cut to $743 per tn from $750 per tn by the govt which is lowest since Jan 2016. At the Indore spot market in Madhya Pradesh, soyoil was steady at 736.9 Rupees per 10 kgs.
--Ref.Soya oil trading range for the day is 729-737.
--Ref soyoil dropped amid selling pressure and lack of support due to weak demand in spot markets.
--However, report of good stocks with importers put pressure on prices.
--Increase in acreage of soybean and hopes of higher output may put pressure on prices.
--At the Indore spot market in Madhya Pradesh, soyoil was steady at 736.9 Rupees per 10 kgs.
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