Ref.Soya Oil settled down -0.55% at 680.1 as weak demand from oil mills offset thin supplies. Quality issues with new soybean crop are giving way to fear of less crushable supplies in the days ahead. Low crushing means limited soyoil supply in the domestic market. Also, traders see good demand in the coming days due to festive season. Fear of low supplies ahead prevails in the markets keeping in view the lower than expected production and crop quality. Sources said sellers are not able to make forward contracts due to uncertainty about supplies. India's vegetable oils (edible & non-edible) imports reported at 944,309 tons during November this year compared to 700,371 tons in the same month last year, consisting of 927,111 tons of edible oils and 17,198 tons on non-edible oils, the latest data from the Solvent Extractors Association of India showed. Last year's soybean crop revised downward to 107.00 lakh tons from 113.40 lakh tons. In the current year, in spite of sizable increase in area under soybean, the crop is lower than last year due to extensive damage both in term of quality and quantity due to heavy rain fall during end September also early October at the time of harvesting. COOIT sees the marketable soybean surplus this season at 89.80 lakh tonnes, down nearly 10% from 97 lakh tonnes last year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 689.35 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.3% to settled at 122300 while prices down -3.75 rupee, now Ref.Soya oil is getting support at 678 and below same could see a test of 676 level, And resistance is now likely to be seen at 683, a move above could see prices testing 686.

Trading Ideas:

Ref.Soya oil trading range for the day is 674-686.

Ref soyoil prices dropped as weak demand from oil mills offset thin supplies.

Quality issues with new soybean crop are giving way to fear of less crushable supplies in the days ahead.

Fear of low supplies ahead prevails in the markets keeping in view the lower than expected production and crop quality.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 689.35 rupees per 10 kgs.