Ref. Soya oil settled up 0.09% at 657.6 on improved demand in the physical market due to upcoming festivals. Prices were also supported on lower US soybean crop condition hampering the prospects of robust output from the world's biggest bean producer. As per the latest release from the United States Department of Agriculture (USDA), global oilseed production for 2014/15 is projected at 521.80 million tons, down 0.60 million from last month. Total world crushing demand is estimated at 426.84 million tonnes, up 0.02 million tonnes from June month. Global ending stocks projected lower by 0.12 million tonnes to 99.54 million tonnes. The global soyabean supplies are estimated higher at 304.69 million tonnes in 2014/15, down 0.10 million tonnes due to strong production in US. The data has reduced the Indian soyabean production by 0.60 million tonnes to 11 million tonnes in 2014-15. Soybean oilmeal exports dropped to 6,635 tons in July compared to 107,038 tons for the corresponding period a year earlier, data release from the Solvent Extractors Association of India (SEA) showed. Another data from the Soybean Processors Association (SOPA) of India showed soymeal exports dropped to 6,682 tons in July compared to 107,037 tons a year earlier. At the Indore spot market in Madhya Pradesh, soyoil was steady at 666.75 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.15% to settled at 112945 while prices up 0.6 rupee, now Ref. Soya oil is getting support at 655 and below same could see a test of 654 level, And resistance is now likely to be seen at 659, a move above could see prices testing 662.

Trading Ideas:

Ref. Soya oil trading range for the day is 654-662.

Ref soyoil ended with gains on improved demand in the physical market due to upcoming festivals.

As per USDA, global oilseed production for 2014/15 is projected at 521.80 million tons, down 0.60 million from last month.

Soybean oilmeal exports dropped to 6,635 tons in July compared to 107,038 tons for the corresponding period a year earlier.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 666.75 rupees per 10 kgs.