Ref. Soya oil settled up 0.32% at 683 on steady demand from traders and stockiests amid low supplies. Prices also seen supported as weak commencement of southwest monsoon hampered bean sowing in major bean producing area in the country. India soybean sowing fell to 3.8 million hectare until Jul 17 from 13.63 million hectare a year ago, data by the government showed. 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. Brazil's harvest may climb to 90 million tons from 86.5 million and Argentina may gather 56 million tons from 55 million a year earlier. At the Indore spot market in Madhya Pradesh, soyoil was steady at 687.55 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.25% to settled at 111100 while prices up 2.2 rupee, now Ref. Soya oil is getting support at 680 and below same could see a test of 675 level, And resistance is now likely to be seen at 688, a move above could see prices testing 691.

Trading Ideas:

Ref. Soya oil trading range for the day is 675-691.

Ref soyoil gained on steady demand from traders and stockiests amid low supplies.

Prices also seen supported as weak commencement of southwest monsoon hampered bean sowing in major bean producing area.

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 687.55 rupees per 10 kgs.