Ref. Soyaoil on NCDEX settled down by -0.8% at 655.05 on prospects of better supply amid bumper production estimates in India. Further soy oil supply in local market likely to rise due to robust crop in the country, which may result in better availability of soyoil and reduce dependency on imports. Also, mustard oil supply is expected to improve in coming weeks as current year production is higher than market expectations. Buyers are anticipating that soyoil will be available at lower range due to sufficient availability, so they are not in hurry and doing need-based buying. On the domestic front, the availability of more domestic soya oil on the back of ample soyabean supplies is dragging down the prices of soya oil derivatives. As per USDA, in 2016-17, soya oil production in India is expected to be around 1.62 million tonnes (mt), up 55 per cent from the previous year. Moreover the overall supplies are seen rising by 2 per cent compared to last year. However, the imports of soya oil are likely to decline by 11 per cent to 3.8 mt. The carryover stock from 2015-16 is estimated to be around 0.531 mt, which is the highest till date. Agriculture Ministry in its second advance estimate for 2016-17 oilseed production pegged soybean output at 14.1 million tons compared to market's expectation of 11.4-11.5 million tons. At the Indore spot market in Madhya Pradesh, soyoil was steady at 675.25 Rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 7.98% to settled at 48430 while prices down -5.3 rupees, now Ref. Soya oil is getting support at 651 and below same could see a test of 647 level, And resistance is now likely to be seen at 662, a move above could see prices testing 669.

Trading Ideas:

Ref. Soya oil trading range for the day is 647-669.

Ref soyoil prices ended with losses on prospects of better supply amid bumper production estimates in India.

The availability of more domestic soya oil on the back of ample soyabean supplies is dragging down the prices.

As per USDA, in 2016-17, soya oil production in India is expected to be around 1.62 million tonnes.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 675.25 Rupees per 10 kgs.