Ref.Soyaoil on NCDEX settled up by 0.75% at 686.1 on short covering after prices dropped on expectation of higher supply. Prices of oil were down on expectation of higher supply with the commencement of harvesting activity in Brazil and better weather conditions over Argentina. Soyoil prices were also down on demand worries as data published by NOPA showed that crushing in US was around 160.176 million bushels of soybeans in December, down from 160.752 million in November and below an average of trade expectations for 162.8 million. Moreover, expectation of higher output during the current rabi season were also dragged the prices. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tons in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes. According to USDA weekly export sales report, net sales of 7,300 tons for 2016-17 down by 77% from the previous week and 72% from the prior 4-week average. As per WASDE report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month while the ending stock is estimated to be around 750,000 million tons which was 700,000 tons in Dec-16. According to National Oilseed Processors Association (NOPA), U.S. December soybean crush fell marginally to 160.176 million bushels from 160.752 million bushels in November. At the Indore spot market in Madhya Pradesh, soyoil was steady at 705.85 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 17.26% to settled at 47430 while prices up 5.1 rupees, now Ref.Soya oil is getting support at 681 and below same could see a test of 676 level, And resistance is now likely to be seen at 689, a move above could see prices testing 692."

Trading Ideas:

Ref.Soya oil trading range for the day is 676-692.

Ref soyoil ended with losses on weak demand and on expectation of higher supply.

Prices of oil were down with the commencement of harvesting activity in Brazil and better weather conditions over Argentina

NOPA showed that crushing in US was around 160.176 million bushels of soybeans in December

At the Indore spot market in Madhya Pradesh, soyoil was steady at 705.85 Rupees per 10 kgs.