Ref. Soya oil settled up 1.02% at 678 tracking upbeat global cues on improved demand for United States soy crop while thin supplies from the new season soybean crop also supported gains. Further, strong export demand too supported the commodity uptrend. However, weak cues from soybean futures in the US, where they are expecting a bumper South American crop, prospects of higher rapeseed production in India and the conducive weather condition capped the gains in Soyabean prices to some extent. Brazil's soy exports will likely set a new high for the month of February due to strong demand and early harvesting of a record crop. As per the latest monthly release from USDA, the global production of oilseeds is expected to increase by 3.50 million tonnes from the previous release to reach 505.85 million tonnes in 2013-14. This is mainly on the account of higher production of mustard seed and Soyabean. USDA estimated the total Soyabean production at 286.82 million tonnes , up 1.88 million tonnes from the last month. India soybean oil imports surged more than double to 53,500 tons in December compared to
21,960 tons a year ago, the data showed. At the Indore spot market in Madhya Pradesh, soyoil was steady at 688.15 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -6.85% to settled at 103150 while prices up 6.85 rupee, now Ref. Soya oil is getting support at 675 and below same could see a test of 672 level, And resistance is now likely to be seen at 680, a move above could see prices testing 682.

Trading Ideas:

Ref. Soya oil trading range for the day is 672-682.

Ref soyoil ended with gains tracking upbeat global cues on improved demand for United States soy crop.

The conducive weather condition capped the gains to some extent.

India soybean oil imports surged more than double to 53,500 tons in December compared to 21,960 tons a year ago, the data showed.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 688.15 rupees per 10 kgs.