Ref.Soya Oil settled down -0.86% at 693.25 on profit booking after prices gained supported after India's weather bureau forecast lower rainfall this year which may impact sowing and harvesting. The country’s vegetable oil imports fell 6 per cent to 8.35 lakh tonnes in March due to a continuous fall in the shipment of palm oil, industry body SEA said. Vegetable oil imports stood at 8.89 lakh tonnes in the same month of the previous year, it said in a statement. India meets about 60 per cent of its annual vegetable oil demand of 17-18 million tonnes via imports. Palm oil makes up 80 per cent of the country’s total vegetable oil imports. “Indian refiners prefer to import crude soft oils over crude palm oil (CPO), which reflected in the pattern of imports in the last few months,” Solvent Extractors Association (SEA) said. Low stocks and steady demand ahead of the festive season did support the market but this is likely to increase the supplies. However, year-to-date soybean export sales are already 4% more than USDA's latest forecast, while soymeal sales are nearly 91%. Lower domestic soyabean crushing has sent jitters to domestic industry as soyabean oil import has gone up by 112 per cent during November 2013 to March 2014. Soybean oil imports during November 2012 - October 2013 period was 1.09 million tonne. At the Indore spot market in Madhya Pradesh, soyoil was steady at 725.2 rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.43% to settled at 135670 while prices down -6 rupee, now Ref.Soya oil is getting support at 689 and below same could see a test of 685 level, And resistance is now likely to be seen at 700, a move above could see prices testing 707.

Trading Ideas:

Ref.Soya oil trading range for the day is 685-707.

Ref soyoil dropped as pressure seen on profit booking after prices gained supported after India's weather bureau forecast lower rainfall this year.

Vegetable oil imports stood at 8.89 lakh tonnes in the same month of the previous year, it said in a statement.

Low stocks and steady demand ahead of the festive season did support the market but this is likely to increase the supplies.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 725.2 rupees per 10 kgs.