Ref Soyaoil Down Tracking Weakness In CPO Prices, Concerns Over Tight Supply
20.08.2021 (in.investing.com) - US Soybean Oil Futures yesterday settled down by -0.23% at 1400.3 tracking weakness in CPO prices after seen supported by lingering concerns over tight supply. Edible oil prices are likely to remain elevated till the arrival of new crops in the October-November period, industry officials said. The rates are unlikely to come down anytime soon as India meets more than half of domestic demand through imports, BV Mehta, executive director, Solvent Extractors Association of India (SEA) said. The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries. Total oilseeds production in the country during 2020-21 is estimated at a record 36.10 million tonnes which is higher by 2.88 million tonnes than the production during 2019-20.
Further, the production of oilseeds during 2020-21 is higher by 5.56 million tonnes than the average oilseeds production of 30.55 million tonnes. India's imports of sunflower oil could rise to a record in 2021/22 as potential bumper crops in Russia and Ukraine pull prices below rival soy oil, making it lucrative for price-sensitive buyers from the subcontinent, industry officials said. India is the world's biggest importer of edible oils and higher purchases of sunflower oil could help exporters such as Argentina, Russia and Ukraine to dispose of surplus output. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1424.9 Rupees per 10 kgs.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 2.63% to settle at 37715 while prices down -3.2 rupees, now Ref. Soya oil is getting support at 1393 and below the same could see a test of 1387 levels, and resistance is now likely to be seen at 1404, a move above could see prices testing 1409.
Trading Ideas:
# Ref. Soya oil trading range for the day is 1387-1409.
# Ref soyoil dropped tracking weakness in CPO prices after seen supported by lingering concerns over tight supply.
# Edible oil prices are likely to remain elevated till the arrival of new crops in the October-November period, industry officials said.
# The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries.
# At the Indore spot market in Madhya Pradesh, soyoil was steady at 1424.9 Rupees per 10 kgs.