Ref. Soyaoil on NCDEX settled up by 0.19% at 674.1 tracking firmness in spot demand despite of higher supply. Domestic supply of soy oil is likely to intensify as the crushing has been active across the country. The base import prices of crude soyoil were raised by $8 per ton each to $853 per tons. This is the third increase in two month by the government. In domestic market rising supply of oilseed from local production is also pressuring prices as supply for edible oil is increasing. Further to it, demand is still sluggish despite drop in temperature, when demand from palm oil shifts to other veg oil as the rival solidifies in winter. Oilmeal exports 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. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 670 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 4.73% to settled at 63540 while prices up 1.3 rupee, now Ref. Soya oil is getting support at 674 and below same could see a test of 672 level, And resistance is now likely to be seen at 677, a move above could see prices testing 678.

Trading Ideas:

Ref. Soya oil trading range for the day is 672-678.

Ref soyoil ended with gains tracking firmness in spot demand despite of higher supply.

Domestic supply of soy oil is likely to intensify as the crushing has been active across the country.

Oilmeal exports 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 670 rupees per 10 kgs.