Gold Silver Reports — Ref Soya Oil Trading Zone at 645-672 — Technically Ref soya oil market is under fresh selling as market has witnessed gain in open interest by 6.66% to settled at 58480 while prices down -3.45 rupees.
Now Ref.Soya oil is getting support at 652 and below same could see a test of 648 level, And resistance is now likely to be seen at 662, a move above could see prices testing 668.
Ref.Soyaoil on NCDEX settled down by -0.52% at 655.95 tracking weakness in spot demand and overseas prices. Pressure also seen amid expectations of an increase in soyabean yield following the recent rains in Argentina and recovery in palm oil production from Malaysia.
On the domestic front, the availability of more domestic soya oil on the back of ample soyabean supplies is dragging down the prices of soya oil derivatives. As per USDA, in 2016-17, soya oil production in India is expected to be around 1.62 million tonnes (mt), up 55 per cent from the previous year.
Moreover the overall supplies are seen rising by 2 per cent compared to last year. However, the imports of soya oil are likely to decline by 11 per cent to 3.8 mt. The carryover stock from 2015-16 is estimated to be around 0.531 mt, which is the highest till date.
Meanwhile, the landed cost of imported soya oil is also seen declining on the back of the ongoing harvest in South America. The harvesting of rabi mustard crops has also started in major growing regions on the expectation of a bigger crop compared to the last two years.
This may further boost availability of oil seeds in the country which is anticipated to be bearish for the edible oil complex. At the Indore spot market in Madhya Pradesh, soyoil was steady at 667.5 Rupees per 10 kgs. — Neal Bhai Reports