Ref. Soya oil settled up 0.35% at 682.05 as prices recovered on short covering after prices dropped driven by lack of demand in the spot markets. However, concerns over the production of summer-sown crops due to forecast of lower rainfall, also supported prices. The weather factor is likely to support the markets at low.

The international markets did remain bearish on good weather reports and record output, however, some upside was seen during the day on concerns of strike in ports of Argentina creating a bottleneck for supplies. The soy oil remained under pressure due to excess supplies from imports. As per SEA data, there has been a significant increase in imports of Soy oil, sunflower oil & Rape oil and drop in imports of Palm oil, for last seven months of edible oil marketing year (Nov - Oct). Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year.

The drop was largely due to a sharp spike in soyabean prices, leading to a delay in crushing, and lower availability of oilmeal for exports. The weather department has said conditions are favourable for monsoon rains to advance in soybean-growing areas of Madhya Pradesh and Rajasthan. At the Indore spot market in Madhya Pradesh, soyoil was steady at 699.05 rupees per 10 kgs.

Technically market is under short covering as market has witnessed drop in open interest by -1.97% to settled at 161030 while prices up 2.4 rupee, now Ref. Soya oil is getting support at 677 and below same could see a test of 672 level, And resistance is now likely to be seen at 685, a move above could see prices testing 688.

REF SOYA OIL

Ref. Soya oil trading range for the day is 673-687.

Ref soyoil prices recovered to end with gains on short covering after prices dropped driven by lack of demand in the spot markets.

However, concerns over the production of summer-sown crops due to forecast of lower rainfall, also supported prices.

The weather department has said conditions are favourable for monsoon rains to advance in soybean-growing areas.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 699.05 rupees per 10 kgs.

SELL REF.SOYA AUG @ 684 SL 687 TGT 681.20-678.NCDEX