Ref. Soya oil settled down -1.5% at 616.05 tracking weakness in spot demand and overseas prices on expectations of record U. S. production. However downside seen limited as due to concerns of lower output after lower than expected rains over central India. As per latest Kharif sowing survey report published by Ministry of Agriculture, total sown area as on now, as per reports received from States, stands at 876.70 lakh hectare vs 928.03 hectare at this time last year, which is a significant progress due to steady rainfalls in most belts. The oilseeds area has increased to 163.09 lakh ha compared to 182.32 lakh ha of last year. Soybean area has increased to 107.77 lakh ha, which is significantly above the 5 year average of 95.7 lakh ha but still lower than last year's high of 121.04 lakh ha. India soybean oil imports surged to record in the month of July on robust demand, data release from the Solvent Extractors Association (SEA) of India showed. Demand for soft oil is increasing over crude palm oil by refineries, which has reflected in pattern of import in last few months. Soybean oil imports increased 30% to 306,068 tons in July compared to 234,650 tons in July 2013, SEA of India data showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 623.7 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -7.52% to settled at 87610 while prices down -9.35 rupee, now Ref. Soya oil is getting support at 611 and below same could see a test of 605 level, And resistance is now likely to be seen at 624, a move above could see prices testing 631.

Trading Ideas:

Ref. Soya oil trading range for the day is 605-631.

Ref soyoil ended with losses tracking weakness in spot demand and overseas prices on expectations of record U. S. production.

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

The oilseeds area has increased to 163.09 lakh ha compared to 182.32 lakh ha of last year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 623.7 rupees per 10 kgs.