Ref. Soya Oil settled down -0.54% at 665.6 due to ample supply in the domestic markets coupled with limited offtake. The international markets are bearish after the U. S. government forecast record inventories of soybeans. The supplies for oil will increase in the local markets as oilseed production likely to be hit by poor monsoon. The soy oil remained under pressure due to excess supplies from imports. As per Solvent Extractors’ Association of India (SEA) data bank, 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 (Nov - Oct). The supplies have dried off with concerns of weak monsoon impacting the sowing progress. If the rains are further delayed, a higher drop in production figures can be expected. As per the latest date released by the Ministry of Agriculture, the oilseed sowing is around 14.49 lakh hectares down from a bumper sowing of 110.27 lakh hectares last year during the same period. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 678.65 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -3.44% to settled at 130570 while prices down -3.6 rupee, now Ref. Soya oil is getting support at 660 and below same could see a test of 653 level, And resistance is now likely to be seen at 673, a move above could see prices testing 679.

Trading Ideas:

Ref. Soya oil trading range for the day is 653-679.

Ref soyoil ended with losses due to ample supply in the domestic markets coupled with limited offtake.

The soy oil remained under pressure due to excess supplies from imports.

The supplies have dried off with concerns of weak monsoon impacting the sowing progress.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 678.65 rupees per 10 kgs.