Ref. Soyaoil on NCDEX settled down by -0.6% at 666.7 as pressure seen amid higher imports in current oil year. The National Oilseed Processors Association said that inventories of the oil had dropped sharply last month, to a smaller than expected 1.376 billion pounds from August 1.62 billion. The demand is strong from oil millers and crushing units amid recovery in crush margins at prevailing prices of soybean at physical markets. Moreover, a delegation of soybean importers from China signed agreements to buy 5.1 million ton of US soybeans valued at $2.1 billion at a ceremony in Des Moines, Iowa, as per the US Soybean Export Council. US oilseeds processors have crushed 4.219 million tonnes (140.6 million bushel) of soybean during August 2016 which is down from 4.337 million tonnes during the corresponding period last year and down from 4.604 million tonnes processed in July 2016. The crushing is lightly lower than the analystnrsquo; s average of 4.231 million tonnes, reported by USDA. Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year. For the first half of the current financial year, cumulative shipments were down 44 per cent at 4,21,741 tonnes over the year-ago period on account of lower availability of seeds for crushing and continued disparity in prices in international markets, the Solvent Extractors Association of India said in a statement. At the Indore spot market in Madhya Pradesh, soyoil was steady at 659.7 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -12.09% to settled at 57300, now Ref. Soya oil is getting support at 665 and below same could see a test of 661 level, And resistance is now likely to be seen at 674, a move above could see prices testing 679.

Trading Ideas:

Ref. Soya oil trading range for the day is 661-679.

Ref soyoil prices dropped as pressure seen amid higher imports in current oil year.

The NOPA said that inventories of the oil had dropped sharply last month, to a smaller than expected 1.376 billion pounds from August 1.62 billion.

Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 659.7 rupees per 10 kgs.