Ref.Soya Oil settled up 0.69% at 659.85 tracking firmness in spot demand on low supplies in domestic markets. The global supplies are on the rise coupled with good sowing progress reports in US also weighed on prices. Some sources also feel seed demand before sowing is the reason behind the gains. India soybean oilmeal exports in the month of May plunged 92% compared to a year ago on higher prices of the oilseed. Export of soybean meal drastically reduced due to high price of soybean leading to disparity in crushing margin and export. Soybean oilmeal exports dropped to 8,226 tons in May compared to 96,492 tons in May 2013, data from the SEA of India showed. South Korea imported 161,241 tons oilmeal compared to 198,367 tons, consisting 98,957 tons of rapeseed meal, 61,667 tons of castor meal and 617 tons of soybean meal. India's vegetable oils import rose by 27% to 8.32 lakh tonne in April this year on account of sharp increase in shipment of crude palm oil (CPO) and crude soft oils, industry body SEA said. Vegetable oils import stood at 6.54 lakh tonne in the same month of the previous year, it said in a statement. India meets about 60% of its annual vegetable oil demand of 17-18 million tonne via imports. At the Indore spot market in Madhya Pradesh, soyoil was steady at 678.25 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.18% to settled at 181810 while prices up 4.55 rupee, now Ref.Soya oil is getting support at 655 and below same could see a test of 651 level, And resistance is now likely to be seen at 662, a move above could see prices testing 665.

Trading Ideas:

Ref.Soya oil trading range for the day is 651-665.

Ref soyoil ended with gains tracking firmness in spot demand on low supplies in domestic markets.

The global supplies are on the rise coupled with good sowing progress reports in US also weighed on prices.

India soybean oilmeal exports in the month of May plunged 92% compared to a year ago on higher prices of the oilseed.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 678.25 rupees per 10 kgs.