Ref.Soya Oil yesterday settled down -2.62% at 634 tracking weakness in spot demand owing to higher estimates of production. It is being reported that there are sufficient soybean stocks in the mandis of Madhya Pradesh and higher soybean sowing estimates are adding to the pressure. Stockists want to sell before prices fall further, but buyers are not interested. So far rainfall was good in all oilseeds producing states. It is promising a bumper oilseeds production. Indian farmers have grown soybeans on 11 million hectares as of July 18, compared with 8.62 million hectares a year earlier. Supplies from the new-season soybean crop are likely to begin in September, nearly a month in advance due to early sowing. The Solvent Extractors’ Association of India has compiled the import data of vegetable oils (edible and non-edible) for the month of June, 2013. The import of vegetable oils during June 2013 is reported at 947,591 tons compared to 783,315 tons in June 2012 i.e. up by 21%, consisting of 911,091 tons of edible oils and 36,500 tons of non-edible oils. Farmers sown oilseeds on an area of 135.99 lakh hectares (lh) as of July 12 higher when compared with 67.70 lh during the same period in 2012, according to the Agriculture Ministry. At the Indore spot market in Madhya Pradesh, soyoil was steady at 655 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -13.84% to settled at 83160 while prices down -17.05 rupee, now Ref.Soya oil is getting support at 627.3 and below same could see a test of 620.6 level, And resistance is now likely to be seen at 644.9, a move above could see prices testing 655.8.

Trading Ideas:

Ref.Soya oil trading range for the day is 621-655.

Ref soyoil ended with losses tracking weakness in spot demand owing to higher estimates of production.

There are sufficient soybean stocks in the mandis of Madhya Pradesh and higher soybean sowing estimates are adding to the pressure.

Stockists want to sell before prices fall further, but buyers are not interested and so far rainfall was good in all oilseeds producing states

At the Indore spot market in Madhya Pradesh, soyoil was steady at 654.7 rupees per 10 kgs.