Ref. Soya oil yesterday settled up 0.26% at 667.8 following gains in overseas edible oil prices and as the rupee hit a record low. Edible oils are witnessing improved demand now as the festive season approaches and markets await for the fresh crop. There has been decent demand in physical markets last week as worries over standing crop in MP and Rajasthan took charge. There are worries that a heavy spell of rainfall in Madhya Pradesh at this stage could hurt the standing crop. However, the local prices have not gained much in last one year on a persistent up tick in imported edible oil. Import of vegetable oils from India jumped by 12% during the November 2012 and June 2013 period at 71.45 lakh tonnes, according to a latest update from Solvent Extractor's Association. Persistent rains have spoiled soya crop particularly in low-lying areas. Water logging has created moisture stress in some pockets of Indore, Hoshangabad and Harda division. 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. Traders fear that the impact of higher sown area may be nullified by the crop damage in many areas or poor heath of the crop. As per the latest USDA report, the USA 2013-14 soybean crop production is estimated to remain at 3.255 billion bushels vs 3.420 billion bushels in July report. At the Indore spot market in Madhya Pradesh, soyoil was steady at 683 rupees per 10 kgs. Now Ref. Soya oil is getting support at 663.8 and below same could see a test of 659.9 level, And resistance is now likely to be seen at 670.6, a move above could see prices testing 673.5.

Trading Ideas:

Ref. Soya oil trading range for the day is 660-672.

Ref soyoil ended with gains following gains in overseas edible oil prices and as the rupee hit a record low.

Edible oils are witnessing improved demand now as the festive season approaches and markets await for the fresh crop.

There has been decent demand in physical markets last week as worries over standing crop in MP and Rajasthan took charge

At the Indore spot market in Madhya Pradesh, soyoil was steady at 682.5 rupees per 10 kgs.