Ref. Soya Oil settled down -1.7% at 651.4 on estimates of higher oilseed production in the current season to increased acreage. Cautious buying is seen in the spot market due to sufficient soybean stocks in the mandis of Madhya Pradesh and better oilseed sowing adding to the pressure to the market sentiments. As per the latest release from the Solvent Extractors' Association of India , the import of vegetable oils during July 2013 is reported at 8.89 lakh tonnes compared to 8.70 lakh tonnes in July 2012 i. e. up by only 2%, consisting of 8.74 lakh tonnes of edible oils and 0.14 lakh tonnes of non-edible oils. The overall import of vegetable oils during Nov.'12 to July '13 is reported at 80.34 lakh tonnes compared to 72.65 lakh tonnes i. e. up by 10.58%.Widespread rains in the soybean producing belt of Indian in MP, MH and Rajasthan has caused some worry as there is a threat of crop damage due to water logging and low sun shine. As per the data released by the SEA, imports of vegetable oils, including non-edible oils, rose 3.2% to 947591 tons in June, supported by higher sunflower and soy oil imports ahead of Ramadan. There has been a good spurt in kharif oilseeds sowing with the acreage spurting by 37% to 149.82 lakh hectares. At the Indore spot market in Madhya Pradesh, soyoil was steady at 681 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -1.3% to settled at 70580 while prices down -11.25 rupee, now Ref. Soya oil is getting support at 647.9 and below same could see a test of 644.4 level, And resistance is now likely to be seen at 658.4, a move above could see prices testing 665.4.

Trading Ideas:

Ref. Soya oil trading range for the day is 644-666.

Ref. Soya oil settled down on estimates of higher oilseed production in the current season to increased acreage.

Cautious buying is seen in spot market due to sufficient soybean stocks in the mandis and better oilseed sowing adding to the pressure

The import of vegetable oils during July 2013 is reported at 8.89 lakh tonnes

At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.15 rupees per 10 kgs.