Ref.Soyaoil on NCDEX settled down by -1.53% at 693.2 tracking weakness in spot and demand worries. Moreover, expectation of higher output during the current rabi season were also dragged the prices. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tons in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes. As per NOPA crushing in US was around 160.176 million bushels of soybeans in December, down from 160.752 million in November and below an average of trade expectations for 162.8 million. In domestic market, demand for refined soy oil is low due to narrowing price gap with other edible oil in the complex. Currently soy oil is trading at premium of $59 per tonnes over rival sunflower oil due to which demand is equally divided, while the price gap with palm oil is $66 which is also considered to be low against normal gap of $80-90 during winter season. Soy oil at present is at a premium of $67 per tons against rival sunflower oil, while the price gap with palm oil is $77 per tons. Soy oil stock at various ports of the country totalled at 3-month low of 146,000 tons. At the Indore spot market in Madhya Pradesh, soyoil was steady at 705.1 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -8.99% to settled at 36950 while prices down -10.8 rupees, now Ref.Soya oil is getting support at 689 and below same could see a test of 683 level, And resistance is now likely to be seen at 703, a move above could see prices testing 711.

Trading Ideas:

Ref.Soya oil trading range for the day is 683-711.

Ref soyoil prices ended with losses tracking weakness in spot and demand worries.

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

As per NOPA crushing in US was around 160.176 million bushels of soybeans in December, down from 160.752 million in November.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 705.1 Rupees per 10 kgs.