Ref. Soya oil settled up 0.31% at 672.4 as firmness in spot demand supported prices amid on buying support. Sentiments seen under pressure due to prospects of bumper production due to higher sowing in the current year. Demand is likely to pick up soon which may not allow prices to fall sharply. Last week, widespread rains were seen in many parts of the Madhya Pradesh which resulted in some delay in fresh crop arrivals in the mandis. This may support the market sentiments to some extent despite the weak international market sentiments. Amidst thin arrivals, demand remains good in the physical markets. India could export as much as 5 million tonnes of soymeal in the year from Oct. 1, 2013, a rise of about 25 percent on the previous year. The latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds was reported at 188 lakh hectares, up 6.21% from the last year in the same time. The data suggested that the total area coverage of soybean during kharif 2013 is higher by 13% compared to corresponding period of 2012. Worries over soybean crop in MP and Rajasthan and a less than satisfactory oilseeds harvest in Maharashtra have been supporting the sentiments in last few days. However, the correction in global crude oil prices and the resultant drop in Malaysia CPO are emerging as a big negative influence now. At the Indore spot market in Madhya Pradesh, soyoil was steady at 674 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.65% to settled, now Ref. Soya oil is getting support at 668.8 and below same could see a test of 665.3 level, And resistance is now likely to be seen at 675.2, a move above could see prices testing 678.1.

Trading Ideas:

Ref. Soya oil trading range for the day is 666-678.

Ref soyoil ended with gains as firmness in spot demand supported prices amid on buying support.

Sentiments seen under pressure due to prospects of bumper production due to higher sowing in the current year

Widespread rains were seen in many parts of the Madhya Pradesh which resulted in some delay in fresh crop arrivals in the mandis.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 673.9 rupees per 10 kgs.