Ref. Soya oil settled up 0.26% at 683.4 tracking firmness in spot demand amid on the expectations of lower output due to poor monsoon in key growing states. Limited buying with steady supplies coupled with good sowing progress in western belts limited the upside. The international markets firmed on dwindling supplies ahead of the bumper crops. Soybean buyers in China are increasing imports as demand for animal feed rises and falling prices boost processing margins. China bought about 2 million metric tons of the oilseed last week after prices declined earlier this month to the lowest in almost four years. Imports in the year beginning Oct. 1 may rise 7 percent to 73 million tons. 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. Soybean sowing is in full swing and likely to be completed by the end of the month, though total acreage may be lower than last year. Soyabean sowing until Jul 17 stood at 1.95 million hectare versus 10.05 million hectare a year ago, agriculture ministry data showed. Sowing is likely to be completed by the month-end and may be lower than last year due to delayed and weak rains. At the Indore spot market in Madhya Pradesh, soyoil was steady at 686.5 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -7.58% to settled at 90015 while prices up 1.8 rupee, now Ref. Soya oil is getting support at 680 and below same could see a test of 677 level, And resistance is now likely to be seen at 686, a move above could see prices testing 689.

Trading Ideas:

Ref. Soya oil trading range for the day is 677-689.

Ref soyoil ended with gains tracking firmness in spot demand amid on the expectations of lower output due to poor monsoon.

Limited buying with steady supplies coupled with good sowing progress in western belts limited the upside

Soybean sowing is in full swing and likely to be completed by the end of the month, though total acreage may be lower than last year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 686.5 rupees per 10 kgs.