NCDEX Soy Oil Weighs Down Tracking Gloabl Cues: April 19, 2012

NCDEX  May soy oil futures traded lower on  account of profit taking after yesterday’s gain in prices. Weakness in overseas markets as lower demand from European Union due to economic uncertainty (debt concern) also provided added bearish market sentiments. 

The import of edible oils in the month of March  2012 is reported at 702,335 tons compared to 412,088 tons in March 2011, up by 70%. 

The overall import of edible oils during  November 2011 to March 2012 was 3,705,739 tonnes compared to  3,024,496 tonnes i.e.  up by 22.5%. Average crude palm oil import  prices was 1172 per tonne (CIF) in the month of March at Indian  ports, it was higher than $1148 per tonne in February. 

However, crude soybean oil prices were 1283/tonnes in the month of March,  slightly down as compared to 1285/tonnes in February. Malaysian palm oil stocks dropped below the 2-million tonne mark for the first time this year, reinforcing views of a tight global supply amid a lower soy crop in drought-hit South America.

As per SGS (cargo surveyor), exports of Malaysian palm oil products for April 1-15 fell 13.5 percent to 606,804 tonnes compared with 701,536 tonnes shipped during March 1-15.

NCDEX Soy Oil Edges Higher, Support At Rs.752-754: Angel

Oilseed complexes are expected to trade lower as lower demand at prevailing prices and eurozone debt concern will lead lower demand. Increased initial margin from 5% to 10% in soybean, soy oil and RM seed coupled with additional margin of 10%.  

However, for the medium-to-long-term, oilseed complexes are expected to trade higher as supply shortage of global oilseeds as well as in the domestic markets. Lower palm oil stocks due to higher export figures and lower US soybean planting intentions.

Soy Oil May NCDEX Futures Rs./qtl
Support: 752-754
Resistance: 762-764

Soybean NCDEX May Futures Rs./qtl
Support: 3185-3200
Resistance: 3260-3284

RM Seed NCDEX May Futures Rs./qtl
Support: 3800-3835
Resistance: 3910-3930

CPO MCX May Futures Rs./qtl
Support: 615-617
Resistance: 624-626