Ref.Soya Oil settled up 0.55% at 692.5 amid low arrivals and firm spot demand. No near-term improvement is seen as markets lack soy product demand. Both soymeal export demand and domestic soyoil intake is below expectations. Prices are steady as supplies are not showing any increase. Demand for soybean oil is robust during winter as it doesn't coagulate in extreme low temperature which may also support prices. As per the latest monthly release from USDA, the global production of oilseeds is expected to increase by 3.50 million tonnes from the previous release to reach 505.85 million tonnes in 2013-14. This is mainly on the account of higher production of mustard seed and Soyabean. USDA estimated the total Soyabean production at 286.82 million tonnes , up 1.88 million tonnes from the last month. India soybean oil imports surged more than double to 53,500 tons in December compared to 21,960 tons a year ago, the data showed. India's soymeal exports may fall short of forecast 4 million tons in the oil year on higher price of soybean. Edible oil imports surged to 1.05 million tons in December compared to 883,489 tons for the same period year ago, data release from the Solvent Extractors Association (SEA) of India. At the Indore spot market in Madhya Pradesh, soyoil was steady at 692.65 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.9% to settled at 106300 while prices up 3.8 rupee, now Ref.Soya oil is getting support at 688 and below same could see a test of 684 level, And resistance is now likely to be seen at 695, a move above could see prices testing 698.

Trading Ideas:

Ref.Soya oil trading range for the day is 684-698.

Ref soyoil ended with gains amid low arrivals and firm spot demand

Both soymeal export demand and domestic soyoil intake is below expectations.

No near-term improvement is seen as markets lack soy product demand.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 692.65 rupees per 10 kgs.