Ref.Soya Oil settled down -1.59% at 600.95 due to poor buying sentiments in local mandis which was supported by a weak international market due to good crop expected from US farms. Prices have fallen as there is improvement in sowing of the crop and subdued demand for Indian soymeal in the domestic and export market. Total India soybean sowing stood at 11.03 million hectares till Aug 29 compared to 10.9 million hectares a week earlier, government data showed. Argentina’s production in 2014-15 may total 55 million tons, up from 54 million tons a year earlier as per Oil World. The country is facing “considerable uncertainty” amid an economic crisis, so farmers may reduce planting of costlier crops including corn amid a liquidity squeeze. China, the world’s biggest soybean consumer, will produce 11.8 million tons in 2014-15, down from 12 million tons a year earlier because of drought in some regions. The growth in the country’s soybean imports may still slow in 2014-15 as quite significant soybean stocks were built in China during the past 10 months. India's soymeal exports slumped to 93,000 ton in Apr-Jul from 518,000 ton a year ago as US, Brazil, and Argentina are offering meal at cheaper rates, data from the SEA showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 616.75 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -12.28% to settled at 41985 while prices down -9.7 rupee, now Ref.Soya oil is getting support at 597 and below same could see a test of 594 level, And resistance is now likely to be seen at 606, a move above could see prices testing 612.

Trading Ideas:

Ref.Soya oil trading range for the day is 594-612.

Ref soyoil dropped due to poor buying sentiments in local mandis which was supported by a weak international market due to good crop expected from US farms.

Prices have fallen as there is improvement in sowing of the crop and subdued demand for Indian soymeal in the domestic and export market.

Total India soybean sowing stood at 11.03 million hectares till Aug 29 compared to 10.9 million hectares a week earlier, government data showed.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 616.75 rupees per 10 kgs.