Ref. Soya Oil yesterday settled up 4.01% at 734.7 supported by a plunge in the rupee to a record low and as edible oil prices improved overseas. Imports are becoming costlier because of the falling rupee. In the spot market, demand is good as traders are making purchases for the festive season. Soybean yields are likely to drop due to heavy rainfall in India's top producing state of Madhya Pradesh. 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. The Solvent Extractors' Association (SEA) of India has compiled the import data of vegetable oils (edible and non-edible) for the month of July, 2013. The import of vegetable oils during July 2013 is reported at 889,493 tons compared to 870,328 tons in July 2012 i. e. up by only 2%, consisting of 874,703 tons of edible oils and 14,790 tons of non-edible oils. The overall import of vegetable oils during Nov.'12 to July '13 is reported at 8,034,553 tons compared to 7,265,527 i. e. up by 10.58%. 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 705 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -9.31% to settled at 54520 while prices up 28.3 rupee, now Ref. Soya oil is getting support at 718.4 and below same could see a test of 702.2 level, And resistance is now likely to be seen at 742.8, a move above could see prices testing 751.

Trading Ideas:

Ref. Soya oil trading range for the day is 702-752.

Ref soyaoil ended with gains supported by a plunge in the rupee to a record low and as edible oil prices improved overseas.

In the spot market, demand is good as traders are making purchases for the festive season.

Soybean yields are likely to drop due to heavy rainfall in India's top producing state of Madhya Pradesh.

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