Ref. Soya Oil yesterday settled up 0.1% at 663.6 as slight firmness in spot supported though pressure seen due to higher imports of edible oil. Soybean supplies are improving in spot markets. Many farmers and stockists were holding last year's crop expecting prices to rise in the lean supplies season. Since prices are falling due to good monsoon rains, now they are bringing old stocks. Indian farmers are expected to increase soybean planting in 2013/14, encouraged by a rally in prices. A strong rupee, which makes edible oil imports cheaper and cuts returns of oilmeal exporters, also weighed on sentiments. Good rains in MP is keeping trend weak here as the overall sowing area is expected to improve along with the crop productivity due to the recent rains in the growing region. remained in bearish phase even as there was slight improvement in International market rates. Good Monsoon reports keeping pressure on the market sentiments. Favorable monsoon conditions may help in increasing sown area under kharif oilseeds including soybean in the country. At international level too, the condition is better in terms of immediate supply. At the Indore spot market in Madhya Pradesh, soyoil was steady at 684.6 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by % to settled at while prices up 0.65 rupee, now Ref. Soya oil is getting support at 661 and below same could see a test of 658 level, And resistance is now likely to be seen at 667, a move above could see prices testing 670.

Trading Ideas:

Ref. Soya oil trading range for the day is 658-670.

Ref soyoil settled flat as slight firmness in spot supported though pressure seen due to higher imports of edible oil.

Many farmers and stockists were holding last year's crop expecting prices to rise in the lean supplies season

Since prices are falling due to good monsoon rains, now they are bringing old stocks.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 684.6 rupees per 10 kgs.