Ref. Soya oil settled up at 613.35 as support seen from the prospective decline in Argentine and Brazilian soya oil exports by 15% from last year in Sept/Dec 2014 also steady demand supported the prices ahead of festive season. Prices are rising as soybean planting finished by early August due to late monsoons. The late arrival of this year's monsoon in the main soybean growing areas of Madhya Pradesh and Maharashtra states will push back planting of the crop by more than three weeks.

Soybean sowing fell to 11.03 million hectare from 12.18 million hectare due to late rains, government data showed. Weighing on the sentiment is expectation of revision on output after delayed withdrawal of monsoon rains which will boost yield. Oil meals exports fell by 58% in August to 1,33,404 tonnes due to lower shipments of soymeal, according to industry data. Oil meals exports had reached 3,17,161 tonnes in August last year, the Solvent Extractors' Association said in a statement. Total exports of oil meals during April-August, 2014-15 fell by 36% to 8,64,929 tonnes, compared to 13,55,980 tonnes in the first five months of 2013-14. "Export of soybean meal greatly reduced in last 5 months due to lower crop than expected, resulting in high cost of soybean in local market.

This lead to total disparity for soybean meal in international market," SEA said. Soymeal exports fell sharply to 1.1 lakh tonnes during April-August 2014 against 7 lakh tonnes in the corresponding period of last fiscal. Technically market is under short covering as market has witnessed drop in open interest by -2.13% to settled at 26620 while prices up 1.15 rupee, now Ref. Soya oil is getting support at 612 and below same could see a test of 610 level, And resistance is now likely to be seen at 616, a move above could see prices testing 618.

Trading Ideas:

Ref. Soya oil trading range for the day is 565-575.

Ref. Soya gained support seen from the prospective decline in Argentine and Brazilian soya oil exports by 15% from last year

Prices are rising as soybean planting finished by early August due to late monsoons.

The late arrival of this year's monsoon in the main soybean areas of MP will push back planting of the crop by more than 3 weeks.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 619.5 rupees per 10 kgs.