Ref. Soya oil settled down -0.22% at 688 on slack buying and weak global cues. According to sources, notwithstanding availability of imported palm oil in the country in abundance, soya oil may see a rise in its prices in January in absence of demand in palm oil. Weak demand is soymeal is affecting domestic market sentiment. Supplies, too, are weak as farmers are holding back their produce in expectations of better prices. Also, bad weather and rains in many areas disrupted supplies. Trade remained dull in the coming days too due to closure of overseas markets for New Year holidays. India's vegetable oils (edible & non-edible) imports reported at 944,309 tons during November this year compared to 700,371 tons in the same month last year, consisting of 927,111 tons of edible oils and 17,198 tons on non-edible oils, the latest data from the Solvent Extractors Association of India showed. According to a latest update from the Central Organisation for Oil Industry & Trade (COOIT), last year's soybean crop revised downward to 107.00 lakh tons from 113.40 lakh tons. In the current year, in spite of sizable increase in area under soybean, the crop is lower than last year due to extensive damage both in term of quality and quantity due to heavy rain fall during end September also early October at the time of harvesting. COOIT sees the marketable soybean surplus this season at 89.80 lakh tonnes, down nearly 10% from 97 lakh tonnes last year. Technically market is under fresh selling as market has witnessed gain in open interest by 2.59% to settled at 122910 while prices down -1.55 rupee, now Ref. Soya oil is getting support at 686 and below same could see a test of 685 level, And resistance is now likely to be seen at 690, a move above could see prices testing 693.

Trading Ideas:

Ref. Soya oil trading range for the day is 685-693.

Ref soyoil ended with losses on slack buying and weak global cues.

Weak demand is soymeal is affecting domestic market sentiment.

Supplies, too, are weak as farmers are holding back their produce in expectations of better prices.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 700.4 rupees per 10 kgs.