Ref. Soya Oil yesterday settled up 2.32% at 701.3 on a weak rupee and concerns over crop damage in the top producing Madhya Pradesh state. Sentiments improved further as a result of the limited stocks on account of restricted arrivals from the major producing belts. Meanwhile, a firming trend in overseas markets as hot, dry weather in the Midwest threatened to curb crop prospects in the US, the world's biggest grower also supported the upside here. However, soybean production is likely to rise as much as 18% to a record 13.34 million tonnes in 2013/14 from a year earlier as rains boost crops in key growing areas. Soybean yields are likely to drop due to heavy rainfall in India's top producer Madhya Pradesh state. India has sold 350,000 to 400,000 tonnes of new-crop soymeal for shipment between October and December on prospects of higher soybean production and a weak rupee. 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, not much of this threat has materialized so far. Prices had plummeted to their lowest levels in nearly two years ahead of the kharif harvesting. At the Indore spot market in Madhya Pradesh, soyoil was steady at 701 rupees per 10 kgs. Now Ref. Soya oil is getting support at 694.2 and below same could see a test of 687.1 level, And resistance is now likely to be seen at 705.2, a move above could see prices testing 709.1.

Trading Ideas:

Ref. Soya oil trading range for the day is 687-709.

Ref soyaoil gains on a weak rupee and concerns over crop damage in the top producing Madhya Pradesh state.

Sentiments improved further as a result of the limited stocks on account of restricted arrivals from the major producing belts.

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

At the Indore spot market in Madhya Pradesh, soyoil was steady at 700.7 rupees per 10 kgs.