Ref.Soyaoil On NCDEX Settled Up By 0.46%

Ref.Soyaoil on NCDEX settled up by 0.46% at 636 on short covering after prices dropped on higher supply. Soyoil's premium over palm oil at $104 per ton compared to average of $102 per tons over past year has led the demand to shift on palm oil.

Further, import of soybean oil for July is above parity of Rs 4 per 10 kilogram compared to soy oil prices on NCDEX which indicates oversupply situation. Meanwhile, soyoil end stocks fell in US in April on lower production of soy oil due to lower crush of soybean is bullish for soy oil prices in medium term.

US oil inventories at the end of April fell 11% year on year. Soyoil inventories at end of April were 1.725 billion lbs compared with 1.943 billion lb a year earlier. Global oilseed production changes for 2016/17 include higher soybean production in Brazil and Argentina and higher peanut production in India.

Global soybean production is raised 3.3 million tons to 351.3 million. The Brazil soybean crop is projected up 2.4 million tons to 114.0 million reflecting increased yields in more recently harvested areas, particularly Rio Grande do Sul.

The larger beginning stocks combined with a 0.5-million-ton reduction to Argentina soybean exports in 2017/18 results in a 3.4-million-ton increase to 92.2 million to global soybean stocks at the end of the 2017/18 marketing year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 620 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -4.23% to settled at 50040 while prices up 2.9 rupees, now Ref.Soya oil is getting support at 632 and below same could see a test of 628 level, And resistance is now likely to be seen at 639, a move above could see prices testing 642.
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