Ref.Soya Oil settled up 0.27% at 698.95 on short covering after prices seen pressure on subdued demand for the bean from oil refineries and plant. India soybean oilmeal exports dropped 9.6% to 89,883 tons in April compared to 99,451 tons in April 2013, data from the Solvent Extractors Association of India (SEA) showed. 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,” SEA said. U.S. soybean inventories will double before next year’s harvest as the 2014 crop jumps to a record level as record planting is expected during this season. Reserves on Aug. 31, 2015, will be 330 million bushels, up from an estimated 130 million this year, the USDA report. Rising supplies may help reduce livestock-feed costs for meat producers while boosting margins for processors. At the Indore spot market in Madhya Pradesh, soyoil was steady at 723.2 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.25% to settled at 148710 while prices up 1.85 rupee, now Ref.Soya oil is getting support at 698 and below same could see a test of 697 level, And resistance is now likely to be seen at 701, a move above could see prices testing 703.

Trading Ideas:

Ref.Soya oil trading range for the day is 697-703.

Ref.Soya oil gained on short covering after prices seen pressure on subdued demand for the bean from oil refineries and plant.

India soybean oilmeal exports dropped 9.6% to 89,883 tons in April compared to 99,451 tons in April 2013.

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 723.2 rupees per 10 kgs.