Ref. Soya oil yesterday settled up 0.47% at 666.1 on good demand for edible oils due to the ongoing festive season, gains in overseas markets and as the rupee fell. Indian oil millers are getting good export orders for soymeal. Though rainfall has stopped in Madhya Pradesh, still a few traders are worried about the yield as in August the state received heavy rainfall. Oilseeds production is set to rebound this kharif season but the jury is still out if it can scale higher than the record 219.22 lakh tonnes (lt) achieved during 2010-11. Soyabean and groundnut production will be higher this year. According to the Ministry of Agriculture, till September 6, oilseeds have been planted on 191.6 lakh hectares (lh) against 117.6 lh during the same period a year ago. But as in the case of other kharif crops, excess rain could affect the final output since damage to crops has been reported from some areas of the country. India has sold 350,000 tonnes 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 latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds was reported at 188 lakh hectares, up 6.21% from the last year in the same time. The data suggested that the total area coverage of soybean during kharif 2013 is higher by 13% compared to corresponding period of 2012. At the Indore spot market in Madhya Pradesh, soyoil was steady at 675 rupees per 10 kgs. Now Ref. Soya oil is getting support at 662 and below same could see a test of 657.9 level, And resistance is now likely to be seen at 670.8, a move above could see prices testing 675.5.

Trading Ideas:

Ref. Soya oil trading range for the day is 660-676.

Ref. Soya oil ended with good gains on good demand for edible oils due to the ongoing festive season

Indian oil millers are getting good export orders for soymeal.

Till date oilseeds have been planted on 191.6 lakh hectares (lh) against 117.6 lh during the same period a year ago.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 675.4 rupees per 10 kgs.