Ref. Soya Oil settled up 0.05% at 682.40 as support seen from the Ramadan demand which continued to support prices while comfortable supplies and weak overseas markets kept prices under check. Concerns over the production of summer-sown crops due to forecast of lower rainfall, also supported prices. The weather factor is likely to support the markets at low. The international markets did remain bearish on good weather reports and record output, however, some upside was seen during the day on concerns of strike in ports of Argentina creating a bottleneck for supplies. The soy oil remained under pressure due to excess supplies from imports. As per SEA data, there has been a significant increase in imports of Soy oil, sunflower oil & Rape oil and drop in imports of Palm oil, for last seven months of edible oil marketing year. Oil meal 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 soybean prices, leading to a delay in crushing, and lower availability of oil meal for exports. The weather department has said conditions are favourable for monsoon rains to advance in soybean-growing areas of Madhya Pradesh and Rajasthan. According to NOPA, Soy oil stocks in April increased to 2.058 bn lbs from 2.023 bn in March and forecast of 1.990 bn lbs. India meet 50-55 percent of its edible consumption through imports and thus rupee factor is a major determinant of edible oil prices. As per the data released by the SEA of India Imports of vegetable oils, including non-edible oils in May increased 13% y-o-y to 1,033,550 tn. Crude Soy oil imports in May ’14 rose 232% to 174,209 tn compared to 52,392 tn last year. Stockpiles of edible oil at ports on June 1 stood at 610,000 tn, the trade body said, higher than 465,000 tn on May 1. Technically market is under short covering as market has witnessed drop in open interest by -7.41% to settled at 149105 while prices up 0.35 rupee, now Ref. Soya oil is getting support at 679 and below same could see a test of 676 level, And resistance is now likely to be seen at 686, a move above could see prices testing 690.

Ref. Soya oil trading range for the day is 676-690.

Oil prices look firm as Ramadan demand may continue to support prices, also prices may also take cues from movement in the Rupee.

Concerns over the production of summer-sown crops due to forecast of lower rainfall, also supported prices.

Support seen during the day on concerns of strike in ports of Argentina creating a bottleneck for supplies.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 695.35 rupees per 10 kgs.

SELL REF.SOYA AUG @ 684 SL 687 TGT 681.20-678.NCDEX