Ref. Soya oil settled up 1.13% at 680.8 as slow arrivals of southwest monsoon delayed sowing process of the bean in the key growing region across the country. India soybean sowing until now at 786,000 hectare compared to 8.35 million hectare for the corresponding period a year, data by the government showed. In India it has rained 35% below normal while central India received 45% below normal rains, said an official at India Meteorological Department (IMD). Soyoil imports fell to 99,682 tons in June compared to 138,849 tons in June 2013, the data from the SEA of India.

Weak kharif oilseed sowing progress so far in the current year coupled with expected decline in arrivals (approach of lean season) too are likely to support the bullish sentiments. Private weather forecasters said India could be heading towards a drought as some parts of central India, Gujarat and Rajasthan did not receive rainfall. The agency will pronounce its verdict on drought in the last week of July as the sowing window may be over by then. 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 681.15 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -6.01% to settled at 113660 while prices up 7.6 rupee, now Ref. Soya oil is getting support at 674 and below same could see a test of 667 level, And resistance is now likely to be seen at 685, a move above could see prices testing 689.

Trading Ideas:

Ref. Soya oil trading range for the day is 667-689.

Ref soyoil gained as slow arrivals of southwest monsoon delayed sowing process of the bean in the key growing region across the country.

India soybean sowing until now at 786,000 hectare compared to 8.35 million hectare for the corresponding period a year.

Soyoil imports fell to 99,682 tons in June compared to 138,849 tons in June 2013, the data from the SEA of India.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.15 rupees per 10 kgs.