Ref. Soya oil settled up 0.54% at 704.5 on improved demand from crushers and gains in overseas markets. This year, buying has been requirement based and crushers probably need supplies now. Gains in overseas markets have been supporting domestic market from the past few days. Demand for soybean oil is robust during winter as it doesn't coagulate in extreme low temperature which may also support prices. The oilseed prices may also be supported after US weekly exports sales data showed improved demand from China. As per the latest monthly release from USDA, the global production of oilseeds is expected to increase by 3.50 million tonnes from the previous release to reach 505.85 million tonnes in 2013-14. This is mainly on the account of higher production of mustard seed and Soyabean. USDA estimated the total Soyabean production at 286.82 million tonnes , up 1.88 million tonnes from the last month. India soybean oil imports surged more than double to 53,500 tons in December compared to 21,960 tons a year ago, the data showed. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 698.25 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -8.63% to settled at 85760 while prices up 3.8 rupee, now Ref. Soya oil is getting support at 701 and below same could see a test of 698 level, And resistance is now likely to be seen at 708, a move above could see prices testing 712.

Trading Ideas:

Ref. Soya oil trading range for the day is 698-712.

Ref soyoil ended with gains on improved demand from crushers and gains in overseas markets.

This year, buying has been requirement based and crushers probably need supplies now.

Gains in overseas markets have been supporting domestic market from the past few days.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 698.25 rupees per 10 kgs.