Ref. Soya oil settled up 0.58% at 672.7 on short covering after prices dropped on expectations of higher availability of supplies. Farmers are holding back crop. Supplies are falling in all spot markets. Demand from oil mills is modest, but even that couldn't be fulfilled. However, weak global cues due to better climatic condition in Argentina increased their higher output hopes and expectations of a bumper South American crop lowered demand for the domestic grown crop, capped the gains in soyabean prices to some extent. India's soymeal exports may fall short of forecast 4 million tons in the oil year on higher price of soybean. Edible oil imports surged to 1.05 million tons in December compared to 883,489 tons for the same period year ago, data release from the Solvent Extractors Association (SEA) of India. Edible oil imports surged to 1.05 million tons in December compared to 883,489 tons for the same period year ago, data release from the Solvent Extractors Association (SEA) of India. India's vegetable oils (edible & non-edible) imports reported at 944,309 tons during November this year compared to 700,371 tons in the same month last year, consisting of 927,111 tons of edible oils and 17,198 tons on non-edible oils, the latest data from the Solvent Extractors Association of India showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 692.45 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.5% to settled at 119530 while prices up 3.9 rupee, now Ref. Soya oil is getting support at 670 and below same could see a test of 668 level, And resistance is now likely to be seen at 674, a move above could see prices testing 676.

Trading Ideas:

Ref. Soya oil trading range for the day is 668-676.

Ref soyoil gained on short covering after prices dropped on expectations of higher availability of supplies.

Demand from oil mills is modest, but even that couldn't be fulfilled.

India's soymeal exports may fall short of forecast 4 million tons in the oil year on higher price of soybean.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 692.45 rupees per 10 kgs.