Ref. Soyaoil on NCDEX settled down by -0.8% at 659.4 on weak physical demand, lowering base import price and higher production estimates of soyoil in the country. The production of edible oil in 201617 will be 72.8 lt, up 25.5% compared to last year. Last year, edible oil production was at 58 lt. The tariff value of crude soyoil was cut by $32 per tonnes to $847 for the second fortnight of February. According to data released by the SEA, soy oil imports fell nearly 62% on year to 1.67 lt mt in January. 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. The hike in production estimate in oilseed has raised hopes for big supply of edible oil in coming months, which will keep oil prices under pressure. India's vegetable oil imports have declined by 19 per cent to 1.02 million tonnes for the month of January 2017 as against 1.24 tonnes in the corresponding month last year. The overall import of vegetable oils during first three months of current oil year 2016-17, November 2016 to January 2017 stood at 3,410,008 tonnes as compared to 4,016,391 tonnes, down by 15 per cent on year-on-year basis, revealed data compiled by the Solvent Extractors’ Association of India (SEA). At the Indore spot market in Madhya Pradesh, soyoil was steady at 670.6 Rupees per 10 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 1.18% to settled at 54830 while prices down -5.35 rupees, now Ref. Soya oil is getting support at 658 and below same could see a test of 655 level, And resistance is now likely to be seen at 665, a move above could see prices testing 669.

Trading Ideas

# Ref. Soya oil trading range for the day is 655-669.

# Ref soyoil prices dropped on weak physical demand, lowering base import price and higher production estimates of soyoil in the country.

# The production of edible oil in 201617 will be 72.8 lt, up 25.5% compared to last year.

# India's vegetable oil imports have declined by 19 per cent to 1.02 million tonnes for the month of January 2017

# At the Indore spot market in Madhya Pradesh, soyoil was steady at 670.6 Rupees per 10 kgs.