Ref. Soya Oil yesterday settled up 0.34% at 702.7 due to fall in supply and rise in export demand for soya meal. Indian farmers are expected to increase soybean planting in 2013/14, encouraged by a rally in prices. India's soymeal exports fell to 96,492 tonnes in May from 142,588 tonnes a year earlier, the Solvent Extractors' Association of India said. 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. As per the latest USDA report, USA 2012-13 soybean ending stocks are expected to remain at 125 Million bushels which is unchanged vs May report. 2013-14 end stocks are expected to increase to 265 million bushels. 2013-14 world soybean end stock are estimated at 737 LT vs 750 LT. In international markets some upside is seen due to delay in sowing process which has supported the market sentiments. As per the SOPA, Indian soymeal export during May 2013 was 0.97 Lakh tons as compared to 1.39 lakh tones in the same period of previous year showing a decrease of 29.74%. At the Indore spot market in Madhya Pradesh, soyoil was steady at 717 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.26% to settled at 76610 while prices up 2.4 rupee, now Ref. Soya oil is getting support at 701.1 and below same could see a test of 699.5 level, And resistance is now likely to be seen at 704.6, a move above could see prices testing 706.5.

Trading Ideas:

Ref. Soya oil trading range for the day is 699-707.

Ref soyaoil ended with gains due to fall in supply and rise in export demand for soya meal.

Indian farmers are expected to increase soybean planting in 2013/14, encouraged by a rally in prices.

India's soymeal exports fell to 96,492 tonnes in May from 142,588 tonnes a year earlier.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 717 rupees per 10 kgs.