Mdex opened unchanged and after trading to days high of Rm 3721 we settled at RM 3718 +2 which at the time of writing this report is trading at RM 3690 -26. Mdex is in consolidation phase and technically more down side can be expected. We are safe to assume that levels will find strong resistance to go past RM 3800 but we will not suggest our readers to make shorts in current market however we propose our readers to make longs once we go in price range of RM 3550-3450. Most of the correction in soft oil , stronger dollar , slowing economy and Chinese issues are almost priced and the pull towards RM 3250 will find a strong resistance at RM 3450. For longs we will suggest to exit when or If we cross RM 3850-4000 and to make fresh shorts RM 4250-4450 is safe. Once again offers to India are mostly unchanged with CPO at USD 865 and ROL at 850. Demand from Indian market is not picking as ROL is offered at Chennai around INR 80,500/- with a replacement cost of INR 83,000/- giving a disparity of INR 2500 or USD 30 PMT. Expect local ROL to trade well only when prices correct little lower as currently even sunflower oil is available at INR 81,000/- crude. Expect ROL to find support between USD 800-825 CNF India which is where we would urge importers to make longs.
CBOT bean oil corrected due to possible hike in interest rate , slow and sluggish Chinese demand , over all negative out look towards the world economy, Renewable diesel plants starting and slightly improved weather pushed Bean oil dec down -214 at 57.48, and jan -197 points 56.98 however beans gained and basis for bean oil also adjusted to keep the flat price more or less stable. CNF India the offers for bean oil started today at 980 against buyers looking to buy closer to 930. Russian soybean oil though not offered today but traders expect it to be offered around USD 930. CBOT is mostly near the support for Sept month and we can expect Sept to drift a little lower towards 55.04 which will be difficult. USDA sept report on 30th should give some more light on the current market but we target CBOT for Dec to continue to make new lows till we find resistance at 54.50. We will suggest readers to wait for prices to come around USD 950 CNF India to make longs.
Black Sea sunflower oil is trading mostly flat today and the offers to India are around USD 900 CIF LW. Buyers on the other hand are not too excited to price till they see levels below USD 850. We understand Spain traded small volumes yesterday around USD 880 and today the offers are around USD 885. War continues to destroy the infrastructure in Ukraine and it will be only a matter of time till we will see little or no possibility of export. Russia on other hand does not seem interested in opening grain corridor again and this too shall keep the prices under pressure for near by. We would suggest our readers to maintain spot long and wait for prices to come below USD 850 CIF India to make longs for OND JFM.