Ref.Soyaoil on NCDEX settled up by 0.51% at 723.55 on demand hope in local mandis and on supply worries. Reports of heavy rains damaging crops lent support to the prices. Supply concerns in Argentina may shift demand to US. In addition to it, availability of other edible oil is improving in domestic market and fueling weakness in oil market.The export of oil meals more than doubled in December 2016 mainly driven by high demand of non-genetically modified (GMO) soybean meal from France. As per data compiled by Solvent Extractors’ Association of India, the country exported 194,309 tons in December 2016, an increase of 130% from 84,218 tons reported same period last year. France imported 106,708 tons of oilmeals as compared to 1,956 tons last year, consisting of 103,650 tons of soybean meal and 3,058 tons of castor meal. The overall export of oilmeals was however down by 13% at 856,798 tonnes during April to December 2016 period as compared to 987,842 tonnes during the same period of last year. Among the major importers of oilmeals from India, South Korea’s import during April-December period declined to 452,099 tons from 616,691 tonnes in the corresponding period last year. As per the latest data shared by the Solvent Extractors’ Association of India (SEA), India’s overall kharif oilseeds production is projected at 178.25 lakh tonnes (lt) for 2016-17 against 126 lt last year. At the Indore spot market in Madhya Pradesh, soyoil was steady at 728 rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 22.09% to settled at 41890 while prices up 3.7 rupee, now Ref.Soya oil is getting support at 721 and below same could see a test of 718 level, And resistance is now likely to be seen at 726, a move above could see prices testing 728.

Trading Ideas:

Ref.Soya oil trading range for the day is 718-728.

Ref soyoil prices ended with gains on demand hope in local mandis and on supply worries.

Reports of heavy rains damaging crops lent support to the prices

In addition to it, availability of other edible oil is improving in domestic market and fueling weakness in oil market.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 728 rupees per 10 kgs.