Ref.Soya Oil settled up 0.35% at 667.3 after reports of below normal rainfall amid lack of supplies in the local market. Indian framers in key oilseed growing areas across India start planting of soybean one-week after commencement of southwest rainfall. With the forecast of untimely rainfall sowing process is expected to be delayed. The Indian Metrological Department (IMD) has forecasted below normal rainfall this year with 33% of rainfall deficiency in Jun-Sep period. India’s oilmeal shipments almost halved in May from the corresponding period to 153,761 tonnes due to a plunge in soy meal shipments. India’s soy meal exports plunged to 8,226 tonnes in May from 96,492 tonnes during the same period last year. India’s oilmeal shipments fell 9.8 percent from a year earlier to 4.3 million tonnes in the 2013/14 fiscal year that ended in March. Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year. The drop was largely due to a sharp spike in soyabean prices, leading to a delay in crushing, and lower availability of oilmeal for exports. Soybean oilmeal exports plunged 92% to 8,226 tons in May compared to 96,492 tons in May 2013, data from the Solvent Extractors Association (SEA) of India showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 693.85 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.48% to settled at 177650 while prices up 2.35 rupee, now Ref.Soya oil is getting support at 664 and below same could see a test of 662 level, And resistance is now likely to be seen at 669, a move above could see prices testing 672.

Trading Ideas:

Ref.Soya oil trading range for the day is 662-672.

Ref soyoil ended with gains after reports of below normal rainfall amid lack of supplies in the local market.

Indian framers in key oilseed growing areas across India start planting of soybean one-week after commencement of southwest rainfall.

With the forecast of untimely rainfall sowing process is expected to be delayed.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 693.85 rupees per 10 kgs.