Ref soyoil dropped tracking weakness in spot despite amid robust demand in the Untied States. However, domestic edible oil in 2016/17 will be 72.8 lt, up 25.5% compared to last year. Last year, edible oil production was at 58 lt. The government has cut the base import price of soyoil by $33 per tonnes for first half of March which is the steepest cut among other edible oils. As per the Second advance estimates released by Ministry of Agriculture stated India's soybean production estimate to be around 14.125 million tons as compared to
7.2 million tons reported in the previous year. On the domestic front, the availability of more domestic soya oil on the back of ample soyabean supplies is dragging down the prices of soya oil derivatives. As per USDA, in 2016-17, soya oil production in India is expected to be around 1.62 million tonnes (mt), up 55 per cent from the previous year. Moreover the overall supplies are seen rising by 2 per cent compared to last year. However, the imports of soya oil are likely to decline by 11 per cent to 3.8 mt. The carryover stock from 2015-16 is estimated to be around 0.531 mt, which is the highest till date. Meanwhile, the landed cost of imported soya oil is also seen declining on the back of the ongoing harvest in South America. Technically market is under fresh selling as market has witnessed gain in open interest by 0.2% to settled at 44850 while prices down -0.05 rupees, now Ref. Soya oil is getting support at 657 and below same could see a test of 654 level, And resistance is now likely to be seen at 662, a move above could see prices testing 664.

Trading Ideas:

# Ref. Soya oil trading range for the day is 654-664.

# Ref soyoil dropped tracking weakness in spot despite amid robust demand in the Untied States.

# However, domestic edible oil in 2016/17 will be 72.8 lt, up 25.5% compared to last year.

# As per the Second advance estimates India's soybean production estimate to be around 14.125 million tons

# At the Indore spot market in Madhya Pradesh, soyoil was steady at 675 Rupees per 10 kgs.