Ref. Soya Oil yesterday settled up 0.94% at 641.15 on low arrivals and fear of crop loss due to unfavourable weather in growing areas. Most growing regions are witnessing heavy rains hence there is fear or loss to the standing crop. According to sources, there is water logging in many fields in low lying areas. Rains also disrupted supplies and most Madhya Pradesh mandis witnessed low arrivals. The total arrivals stood steady at 4,000 bags, while demand was seen around 6,000 bags against 5,000 bags. Heavy rainfall in Madhya Pradesh, Maharashtra and Rajasthan can damage soybean crop. At this stage, the crop needs sunshine, but more rainfall is forecast in the coming days. Madhya Pradesh and Maharashtra, the top soybean producing states, are likely to receive heavy rainfall in the next three days. There has been a good spurt in kharif oilseeds sowing with the acreage spurting by 37% to 149.82 lakh hectares. The demand for soybeans from local solvent extractors is steady ahead of the festive season. However, the local prices have not gained much in last one year on a persistent up tick in imported edible oil. Import of vegetable oils from India jumped by 12% during the November 2012 and June 2013 period at 71.45 lakh tonnes, according to a latest update from Solvent Extractor's Association. At the Indore spot market in Madhya Pradesh, soyoil was steady at 666 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.1% to settled at 45600 while prices up 6 rupee, now Ref. Soya oil is getting support at 636.8 and below same could see a test of 632.5 level, And resistance is now likely to be seen at 644.7, a move above could see prices testing 648.3.

Trading Ideas:

Ref. Soya oil trading range for the day is 632-648.

Ref soyoil ended with gains on low arrivals and fear of crop loss due to unfavourable weather in growing areas.

Most growing regions are witnessing heavy rains hence there is fear or loss to the standing crop.

Rains also disrupted supplies and most Madhya Pradesh mandis witnessed low arrivals.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 666.4 rupees per 10 kgs.