Ref.Soya Oil settled up 0.61% at 688.95 on late short covering after prices dropped on weak demand from buyers. 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. The international market firmed up on steady buying and export orders. This month’s U.S. soybean supply and use projections for 2014/15 include a small reduction in beginning and ending stocks. Lower beginning stocks reflect a higher crush projection for 2013/14. Soybean crush for 2013/14 is raised 5 million bushels to 1,700 million reflecting an increase in projected soybean meal exports. Soybean meal exports are projected at 11.5 million short tons, up 0.4 million from last month reflecting stronger-than-expected shipments this spring. Soybean ending stocks for 2013/14 are projected at 125 million bushels, down 5 million from last month. Ending stocks for 2014/15 are also reduced 5 million bushels to 325 million. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 700.5 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -8.01% to settled at 135660 while prices up 4.15 rupee, now Ref.Soya oil is getting support at 683 and below same could see a test of 677 level, And resistance is now likely to be seen at 692, a move above could see prices testing 695.

Trading Ideas:

Ref.Soya oil trading range for the day is 677-695.

Ref.Soya oil settled up on late short covering after prices dropped on weak demand from buyers.

Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year.

This month’s U.S. soybean supply and use projections for 2014/15 include a small reduction in beginning and ending stocks.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 700.5 rupees per 10 kgs.