Ref. Soya oil yesterday settled up 0.49% at 655 on good demand and low supplies. The impact of higher sown area may be nullified by the crop damage in many areas or poor heath of the crop. This has given a bullish impetus to the soybean market in India. As per the SEA of India data, the export of oilmeals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012 i. e. up by 12%. However, the total export of oilmeals during April-June 2013 is down and reported at 850,951 tons compared to 1,074,034 tons during the same period of last year i. e. down by 21%.The production outlook for soybean is positive despite the fear of damage to the planted crop due to heavy showers in some growing pockets. the extent of damage to the planted soybean crop could not yet be ascertained as the main summer season oilseed crop was still in the growing stage. Indian farmers planted soybeans on 11.88 million hectares as of Aug. 1, up 15.2 percent from a year earlier. soybean prices in spot were higher as soymeal exporters took buying position ahead of a U. S. government report on global supply and demand for farm products including soybean. At the Indore spot market in Madhya Pradesh, soyoil was steady at 680 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.25% to settled at 68520 while prices up 3.2 rupee, now Ref. Soya oil is getting support at 652.7 and below same could see a test of 650.5 level, And resistance is now likely to be seen at 656.5, a move above could see prices testing 658.1.

Trading Ideas:

Ref. Soya oil trading range for the day is 650-658.

Ref. Soya oil ended with good gains on good demand and low supplies.

The impact of higher sown area may be nullified by the crop damage in many areas or poor heath of the crop.

The export of oilmeals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012

At the Indore spot market in Madhya Pradesh, soyoil was steady at 679.5 rupees per 10 kgs.