Ref. Soyaoil on NCDEX settled down by -0.16% at 726.6 on profit booking after prices gained on demand hope in local mandis. Forecast as well as ongoing heavy rains in Argentina is increasing threat to the soy crop. Soybean prices overlooked the disappointing NOPA crush estimates as well as low weekly export sales. The NOPA crush came in at 160.752 million bushels during November. A year ago, the December crush totalled 157.711 million bushels. Meanwhile oil prices eased as NOPA soy oil stock numbers were lower than market anticipations of 1.352 billion lbs. As of December 31 soy oil stocks rose to 1.434 billion lbs from 1.339 billion at the end of November but still below the 1.481 billion lbs recorded at the end of December 2015. NOPA said that soy meal exports rose to 949,615 tons in December, the biggest monthly total since January 2015, from 804,332 tons 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. Imports in 2016/17 are unchanged at 275 million lbs. Biodiesel use in 2016/17 was unchanged at 6,200 million lbs. At the Indore spot market in Madhya Pradesh, soyoil was steady at 732.65 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -10.3% to settled at 36830 while prices down -1.2 rupee, now Ref. Soya oil is getting support at 726 and below same could see a test of 724 level, And resistance is now likely to be seen at 729, a move above could see prices testing 730.

Trading Ideas:

Ref. Soya oil trading range for the day is 724-730.

Ref soyoil prices ended with losses on profit booking after prices gained on demand hope in local mandis.

Forecast as well as ongoing heavy rains in Argentina is increasing threat to the soy crop.

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.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 732.65 rupees per 10 kgs.