Ref.Soya Oil settled up 0.48% at 558.9 due to good demand in spot markets due to festivals. Soybean exports from the U.S. are set to accelerate in the next few months as farmers harvest the biggest crop. U.S. soybean exports will climb to a record 46.3 million metric tons in the 2014-15 marketing season that starts Sept. 1 from 44.65 million tons a year earlier. Global soybean output will total 306.7 million tons. US soybean crop is likely to be disposed of quickly in the first four to six months of the new season as Brazil’s stocks are low. Soybean prices have dropped 21 percent this year as beneficial U.S. growing weather boosted oilseed and grain development. Oil World estimates U.S. soybean production at 103.85 million tons in 2014-15, in line with USDA’s forecast and 13 percent bigger than a year earlier. As per the latest Kharif sowing survey report published by Ministry of Agriculture, the total sown area as on 29th August, as per reports received from States, stands at 966.25 lakh hectare as compared to 998.01 lakh hectare at this time last year, which is a significant progress due to steady rainfalls in most belts. The oilseeds area has increased to 172.21 lakh ha compared to 186.70 lakh ha of last year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 617.65 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 4.03% to settled at 121035 while prices up 2.65 rupee, now Ref.Soya oil is getting support at 557 and below same could see a test of 553 level, And resistance is now likely to be seen at 564, a move above could see prices testing 567.

Trading Ideas:

Ref.Soya oil trading range for the day is 553-567.

Ref soyoil ended with gains due to good demand in spot markets due to festivals.

The oilseeds area has increased to 172.21 lakh ha compared to 186.70 lakh ha of last year.

Oil World estimates U.S. soybean production at 103.85 million tons in 2014-15, in line with USDA’s forecast and 13 percent bigger than a year earlier.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 617.65 rupees per 10 kgs.