Ref. Soya oil settled down -0.85% at 675.2 on improved sowing in Madhya Pradesh, and rise in the arrivals in the local market. Southwest monsoon are improving in major bean producing area thereby boosting sowing prospects. According to sources, 80% soybean sowing is complete in India and the remaining will get over by the end of this week. Low demand and steady supplies in mandis have been noted. The international markets showed weakness on ample production in the coming season. Oilmeal exports fell by 31% to 5.92 lakh tonnes during the April-June period of the current fiscal due to sharp decline in soyabean shipments to Iran, South Korea and other countries.

Export of oilmeal, used as animal feed, were 8.56 lakh tonnes in the same period of 2013-14. According to the Solvent Extractors Association (SEA), soyabean meal exports have declined sharply in the last two months due to poor supply of soybean coupled with high price led to total disparity in international market. In June, soybean meal exports fell to 2,637 tonne, the lowest level, SEA said in a statement. As per SEA data, total soyabean exports fell to 1 lakh tonnes in the first quarter of 2014-15, as against 4.09 lakh tonnes in the year-ago period.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 682.35 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -8.52% to settled at 60165 while prices down -5.8 rupee, now Ref. Soya oil is getting support at 671 and below same could see a test of 668 level, And resistance is now likely to be seen at 680, a move above could see prices testing 686.

Trading Ideas:

Ref. Soya oil trading range for the day is 668-686.

Ref soyoil prices dropped on improved sowing in Madhya Pradesh, and rise in the arrivals in the local market.

Southwest monsoon are improving in major bean producing area thereby boosting sowing prospects.

The international markets showed weakness on ample production in the coming season.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 682.35 rupees per 10 kgs.