Ref.Soya Oil settled up 1.11% at 673 on reports key growing areas did not receive rainfall hurting prospects of sowing. USDA in its report have projected higher ending stocks for Sept. 2015, followed by very good yields in soybean. In the July 11 supply and demand report, USDA is projecting a record U.S. soybean yield of 45.2 bushels per acre in 2014, leading to total U.S soybean production of 3.8 billion bushels in 2014. By comparison, total U.S. soybean production was less than 3.3 billion bushels in 2013. USDA is now estimating soybean ending stocks at the end of the 2014-15 marketing year to be at 415 million bushels, which would be among the highest levels ever. 2013-14 soybean ending stocks are estimated to be at 140 million bushels, which would very similar the level of carryover soybeans from 2012-13. With the monsoon finally advancing to Central heartland, the sowing of soyabean – a major kharif oilseed crop – has formally commenced in the key producing State of Madhya Pradesh. Sowing has begun, though certain areas are yet to receive showers. If it rains over the next few days across the State, we expect farmers to complete sowing by July 25. Delayed arrival of monsoon and deficient rains so far this year have pushed back sowing of the oilseed crop by about three weeks in these States. At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.3 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -5.03% to settled at 124005 while prices up 7.4 rupee, now Ref.Soya oil is getting support at 669 and below same could see a test of 665 level, And resistance is now likely to be seen at 675, a move above could see prices testing 677.

Trading Ideas:

Ref.Soya oil trading range for the day is 665-677.

Ref soyoil gained on reports key growing areas did not receive rainfall hurting prospects of sowing.

USDA in its report have projected higher ending stocks for Sept. 2015, followed by very good yields in soybean.

Delayed arrival of monsoon and deficient rains so far this year have pushed back sowing of the oilseed crop by about three weeks.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.3 rupees per 10 kgs.