Ref. Soya oil settled up 0.3% at 695.7 tracking firmness in spot demand amid short covering after prices dropped on expectations of higher supplies in coming weeks. There was lack of buying support from millers and that pressurized the market. India's soybean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop. World soybean inventories on Oct. 1, before next year's Northern Hemisphere harvests, will total 70.62 million tons, compared with 70.23 million forecast in November and 60.18 million a year earlier. Total U. S. oilseed production for 2013/14 is projected at 96.44 million tons, down slightly due to a small reduction in cottonseed. Although soybean production remains unchanged, 2013/14 supplies are raised 10 million bushels on stronger-than-expected early season soybean imports. Soybean exports are increased 25 million bushels to 1.475 billion reflecting record commitments (shipments plus outstanding sales) through November. India's vegetable oils (edible & non-edible) imports reported at 944,309 tons during November this year compared to 700,371 tons in the same month last year, consisting of 927,111 tons of edible oils and 17,198 tons on non-edible oils, the latest data from the Solvent Extractors Association of India showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 696.65 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.68% to settled at 99300 while prices up 2.1 rupee, now Ref. Soya oil is getting support at 693 and below same could see a test of 690 level, And resistance is now likely to be seen at 698, a move above could see prices testing 700.

Trading Ideas:

Ref. Soya oil trading range for the day is 690-700.

Ref. Soya oil gained tracking firmness in spot demand amid short covering after prices dropped on expectations of higher supplies

There was lack of buying support from millers and that pressurized the market.

India's soybean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes

At the Indore spot market in Madhya Pradesh, soyoil was steady at 696.65 rupees per 10 kgs.