Ref. Soyaoil prices traded in range tracking weakness in spot demand and overseas prices on demand worries from the US. Demand from end-consumers continues to remain as per requirement due to which uplifting from traders and stockiest is sluggish. Moreover, supplies of domestic soyoil are adequate on the back of bumper soybean production last season. Moreover, the expectation of higher output during the current rabi season have also dragged the prices. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tonnes in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes. According to USDA weekly export sales report, net sales of 7,300 tonnes for 2016-17 down by 77% from the previous week and 72% from the prior 4-week average. As per WASDE report, around 10.16 million tonnes is the estimated production figure for 2016-17 which is up by 0.5% on month while the ending stock is estimated to be around 750,000 million tonnes which were 700,000 tonnes in Dec-16. According to National Oilseed Processors Association (NOPA), U. S. December soybean crush fell marginally to 160.176 million bushels from 160.752 million bushels in November. The crush of soybean in December 2015 was 157.711 million bushels. Production of soy oil in U. S. in December fell to 1.861 billion lbs from 1.856 billion lbs in November 2016. At the Indore spot market in Madhya Pradesh, soyoil was steady at 725 rupees per 10 kgs. Technically now Ref. Soya oil is getting support at 716 and below same could see a test of 713 level, And resistance is now likely to be seen at 720, a move above could see prices testing 721.

Trading Ideas:

# Ref. Soya oil trading range for the day is 713-721.

# Ref. Soyaoil prices traded in range tracking weakness in spot demand and overseas prices on demand worries from the US.

# Moreover, the expectation of higher output during the current rabi season has also dragged the prices.

# Demand from end-consumers continues to remain as per requirement due to which uplifting from traders and stockiest is sluggish.

# At the Indore spot market in Madhya Pradesh, soyoil was steady at 725 rupees per 10 kgs.