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Ref.Soyaoil on NCDEX settled up by 0.99% at 709.15

Posted on Nov 08, 2017 by kc_admin

Ref.Soyaoil on NCDEX settled up by 0.99% at 709.15 amid hopes of higher demand.  Prices of soyoil were also up on expectation that government may hike import duty on oil. The Solvent Extractor’s Association (SEA) of India has requested the government of tweak import duty rates on edible oil which ensure higher prices to farmers for their produces. Needless to say, edible oil inflation during the last decade has been woefully low and need of the hour is to allow it to go up. The extra revenue generated by increasing duties should be ploughed back into Oilseed Development programmes, industry said.  India’s edible oil imports are likely to rise to 15.90 million tonnes in the 12 months through October 2018, up from an estimated 15.14 million tonnes shipped this marketing year. Lower oilseed production in India, the world’s biggest edible oil importer, rising demand and population growth are boosting demand for imported oils. India’s soybean crop is lower this year, some areas had too much and while others remained dry. Soybean oil was quoted at $840 a tonne, including cost insurance and freight (CIF) in India as compared with sunflower oil priced at $815 a tonne. Chinese imports of oilseeds are forecast to grow to a record 99.8 million tonnes in 2017/18, up 1.3 million tonnes from the prior season, according to a report issued by the USDA’s in China. At the Indore spot market in Madhya Pradesh, soyoil was steady at 685 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 6.93% to settled at 39630, now Ref.Soya oil is getting support at 704 and below same could see a test of 700 level, And resistance is now likely to be seen at 711, a move above could see prices testing 714.

Trading Ideas:

#             Ref.Soya oil trading range for the day is 700-714.

#             Ref soyoil ended with gains amid hopes of higher demand.

#             Prices of soyoil were also up on expectation that government may hike import duty on oil.

#             SEA of India has requested the government of tweak import duty rates on edible oil which ensure higher prices to farmers for their produces.

#             At the Indore spot market in Madhya Pradesh, soyoil was steady at 685 Rupees per 10 kgs