Ref.Soya Oil settled down -0.13% at 625.4 tracking weakness in spot prices and weak global markets and sluggish export demand for soymeal. Steady increase in sowing area coupled with bearish palm oil sentiments hitting the market sentiments. However downside seen limited concerns of lower output after lower than expected rains over central India. The USDA estimated the U.S. soybean crop at a record of 3.82 billion bushels, up 16 percent on the year. As per Solvent Extractors’ Association of India the total export of oilmeals during April-July 2014 is at 721,577 tons compared to 1,038,819 tons i.e. down by 31%. In July 2014 export of oilmeals stood at 115,094 tons compared to 182,133 tons in July 2013 i.e. down by 37%. Export of soybean meal greatly reduced in last 3 months due to high cost of soybean in local market lead to total disparity for soybean meal in international market. India July edible oil imports jumped to 1.09 million tons compared 874,703 tons for the same period a year earlier, the SEA of India said.  India vegetable oil imports rose to 1.10 million tons for in July compared to 889,493 tons for the same period year ago, data showed.  At the Indore spot market in Madhya Pradesh, soyoil was steady at 641.75 rupees per 10 kgs. At the Indore spot market in Madhya Pradesh, soyoil was steady at 633.25 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.83% to settled at 94730 while prices down -0.8 rupee, now Ref.Soya oil is getting support at 620 and below same could see a test of 615 level, And resistance is now likely to be seen at 629, a move above could see prices testing 633.

Trading Ideas:

Ref.Soya oil trading range for the day is 615-633.

Ref soyoil ended with losses tracking weakness in spot prices and weak global markets and sluggish export demand for soymeal.

Steady increase in sowing area coupled with bearish palm oil sentiments hitting the market sentiments.

However downside seen limited concerns of lower output after lower than expected rains over central India.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 633.25 rupees per 10 kgs.