Ref.Soya Oil settled down -0.25% at 696.5 on late profit booking after prices gained due to steady demand and also was supported by strong bullish rally in the international markets. Persistent global demand for soybeans also supported the market ahead of USDA’s monthly report on crop progress. U.S. soybean export demand has slowed seasonally as more South American new-crop beans are available, but there have so far been few cancellations of U.S. sales despite very tight supplies. 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, which reflected in the pattern of imports in the last few months,” SEA said. According to a latest update from the COOIT, last year`s soybean crop was revised downward to 107.00 lakh tons from 113.40 lakh tons. In the current year, in spite of sizable increase in area under soybean, the crop is lower than last year due to extensive damage both in term of quality and quantity due to heavy rain fall during end September also early October at the time of harvesting. Technically market is under fresh selling as market has witnessed gain in open interest by 1.22% to settled at 153930 while prices down -1.75 rupee, now Ref.Soya oil is getting support at 694 and below same could see a test of 692 level, And resistance is now likely to be seen at 699, a move above could see prices testing 702.

Trading Ideas:

Ref.Soya oil trading range for the day is 692-702.

Ref.Soya oil dropped on late profit booking after prices gained due to steady demand and also was supported by firm international prices.

Persistent global demand for soybeans also supported the market ahead of USDA’s monthly report on crop progress.

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.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 724.45 rupees per 10 kgs.