Ref. Soya oil yesterday settled down -0.96% at 665 as the expected rise in soybean production weighed on prices. Edible oil inventory is huge and the crushing of new-season soybeans will further increase supplies. Supplies from new-season soybean crop are likely to begin in September, nearly a month in advance due to early sowing. In India, the crop is expected to remain good this year on good monsoon and increased sown area this year. Good rain fall is expected to pressurise the commodities price to certain extent in the domestic market. Farmers sown oilseeds on an area of 135.99 lakh hectares (lh) as of July 12 higher when compared with 67.70 lh during the same period in 2012, according to the Agriculture Ministry. The total area sown for soybean crop may exceed last year's 10.9 mn hectares on rise in sowing in Madhya Pradesh and Maharashtra. India's import of vegetable oils during June 2013 was reported at 947,591 tons, up by 21% when compared to the 783,315 tons during the same period last year, according to the data released by the Solvent Extractors' Association of India (SEA). The imports consist of 911,091 tons of edible oils and 36,500 tons of non-edible oils. The overall import of vegetable oils during November 2012 to June 2013 reported at 7,145,060 tons. At the Indore spot market in Madhya Pradesh, soyoil was steady at 689 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by % to settled at while prices down -6.45 rupee, now Ref. Soya oil is getting support at 661 and below same could see a test of 657 level, And resistance is now likely to be seen at 671.7, a move above could see prices testing 678.4.

Trading Ideas:

Ref. Soya oil trading range for the day is 658-678.

Ref soyaoil seen under pressure as the expected rise in soybean production weighed on prices.

Edible oil inventory is huge and the crushing of new-season soybeans will further increase supplies.

Supplies from new-season soybean crop are likely to begin in September, nearly a month in advance due to early sowing.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 688.15 rupees per 10 kgs.