Ref. Soya Oil yesterday settled up 0.98% at 707.9 as rise in dollar demand and export reports have kept prices in bullish territory. Soymeal demand has also shown improvement which is working in favour of prices. The Solvent Extractors' Association of India has compiled the import data of vegetable oils (edible and non-edible) for the month of July, 2013. In Indian markets also, reports of fear of crop damage in some parts of its growing areas in MP due to excess rains could keep supporting prices. Adverse weather in the US created apprehensions of tighter global oil supplies. 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. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 705 rupees per 10 kgs. Now Ref. Soya oil is getting support at 702.5 and below same could see a test of 697.1 level, And resistance is now likely to be seen at 712.4, a move above could see prices testing 716.9.

Trading Ideas:

Ref. Soya oil trading range for the day is 698-716.

Ref soyaoil ended with gains as rise in dollar demand and export reports have kept prices in bullish territory.

Soymeal demand has also shown improvement which is working in favour of prices

Reports of fear of crop damage in some parts of its growing areas in MP due to excess rains could keep supporting prices

At the Indore spot market in Madhya Pradesh, soyoil was steady at 705.4 rupees per 10 kgs.