Ref.Soyaoil on NCDEX settled up by 0.39% at 727.8 on demand hope in local mandis and on supply worries from Argentina. The prevailing supply concerns in Argentina due to weather uncertainty pushed up prices. National Oilseed Processors Association crushing probably rose to 163.558 million bushels from 157.711 million bushels a year earlier. Soybean-oil reserves probably fell 5.7% to 1.396b lbs from 1.481b a year earlier. In domestic market, India's vegetable oil imports during the first couple months of current marketing year Nov-Dec (2016-17) dropped 14% at 2.385 million tons against last year, according to the Solvent Extractors' Association of India (SEA). SEA said in a statement that veg oil shipment in December plunged 15% at 1.210 million tons from last year, and nearly 3% lower from last month. The SEA in its monthly report said, the country import of soy oil jumped 41% at 232,132 tons in month of December against 164,286 tonnes in November. According to United States Department of Agriculture (USDA) January estimate, U.S 2016/17 ending stocks of soy oil is estimated to rise to 1,652 million lbs from 1,522 million lbs in January estimate. Opening stocks were unchanged at 1,687 million lbs. Production of soy oil in 2016/17 is estimated to rise to 22390 million lbs from 22,290 million lbs. At the Indore spot market in Madhya Pradesh, soyoil was steady at 731.6 rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.83% to settled at 41060 while prices up 2.85 rupee, now Ref.Soya oil is getting support at 724 and below same could see a test of 719 level, And resistance is now likely to be seen at 733, a move above could see prices testing 737.

Trading Ideas:

Ref.Soya oil trading range for the day is 719-737.

Ref.Soyaoil prices ended with gains on demand hope in local mandis and on supply worries from Argentina.

The prevailing supply concerns in Argentina due to weather uncertainty pushed up prices.

India's vegetable oil imports during the first couple months of current marketing year Nov-Dec (2016-17) dropped 14% at 2.385 million tons.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 731.6 rupees per 10 kgs.