Ref. Soya oil yesterday settled up 0.11% at 643.7 tracking firm spot demand after prices dropped as a jump in oilseeds acreage due to good monsoon depressed sentiment. Rainfall has been well distributed over the main growing areas of Central and Western India. Supplies from the new-season soybean crop are likely to begin in September, nearly a month in advance due to early sowing. The weakness is seen in last some session due to higher cultivated area for soybean, the main summer oilseed crop. Indian farmers sowed soybeans in 11 million hectares until the week ended July 18, up 28 percent from a year ago. There has been a good spurt in kharif oilseeds sowing with the acreage spurting by 37% to 149.82 lakh hectares. The demand for soybeans from local solvent extractors is steady ahead of the festive season. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 652 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 2.95% to settled at 72490 while prices up 0.7 rupee, now Ref. Soya oil is getting support at 641.1 and below same could see a test of 638.5 level, And resistance is now likely to be seen at 646.4, a move above could see prices testing 649.1.

Trading Ideas:

Ref. Soya oil trading range for the day is 639-649.

Ref. Soya oil gained tracking firm spot demand after prices dropped as a jump in oilseeds acreage due to good monsoon depressed sentiment

Rainfall has been well distributed over the main growing areas of Central and Western India.

Supplies from the new-season crop are likely to begin in September, nearly a month in advance due to early sowing.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 651.75 rupees per 10 kgs.