Ref.Soya Oil settled up 0.26% at 667.4 tracking firm spot demand on fear of low and delayed monsoon rains. Delayed monsoon may give way to late sowing which may affect productivity. Also, demand for soybean seed ahead of the new Kharif season is also supporting the prices. Seed demand may continue to support the prices this week and the prices may gain further. The global supplies are on the rise coupled with good sowing progress reports in US kept the upward movement restricted. 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. India soybean oilmeal exports dropped to 8,226 tons in May compared to 96,492 tons in May 2013, data from the Solvent Extractors Association of India showed. Oilmeal export to Iran was down 57 per cent in the last two months at 63,115 tonne (148,234 tonne). South Korea imported 161,241 tonne as compared to 198,367 tonne, down 18 per cent, while Thailand imported 41,800 tonne of rapeseed meal and 750 tonne of soyabean meal. At the Indore spot market in Madhya Pradesh, soyoil was steady at 694 rupees per 10 kgs.  Technically market is under short covering as market has witnessed drop in open interest by -0.37% to settled at 175900 while prices up 1.75 rupee, now Ref.Soya oil is getting support at 665 and below same could see a test of 662 level, And resistance is now likely to be seen at 671, a move above could see prices testing 674.

Trading Ideas:

Ref.Soya oil trading range for the day is 662-674.

Ref soyoil ended with gains tracking firm spot demand on fear of low and delayed monsoon rains.

Delayed monsoon may give way to late sowing which may affect productivity.

The global supplies are on the rise coupled with good sowing progress reports in US kept the upward movement restricted.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 694 rupees per 10 kgs.