Commodity Trading Tips for Ref.Soya oil by Kedia Commodity

Ref. Soyaoil on NCDEX settled down by -0.2% at 725.15 tracking weakness in spot demand and overseas prices amid expectation of higher supply. According to USDA weekly export sales report, net sales of 7,300 tons for 2016 -17 down by 77% from the previous week and 72% from the prior 4-week average. As per WASDE report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month while the ending stock is estimated to be around 750,000 million tons which was 700,000 tons in Dec-16. According to National Oilseed Processors Association (NOPA), U. S. December soybean crush fell marginally to 160.176 million bushels from 160.752 million bushels in November. Crush of soybean in December 2015 was 157.711 million bushels. Production of soy oil in U. S. in December fell to 1.861 billion lbs from 1.856 billion lbs in November 2016. Production in December 2015 was 1.834 billion lbs. Soy oil stocks in U. S. at the end of December rose 7.1 percent to 1.434 billion lbs compared to 1.338 billion lbs in November 2016. Stocks of soy oil in December were lower by 3.2 percent compared to December 2015, which was reported at 1.481 million lbs. Yield rose to 11.62 lbs/bushel in December from 11.55 lbs/bushel in November. Yield in December 2015 was reported at 11.63 lbs/bushel. At the Indore spot market in Madhya Pradesh, soyoil was steady at 732.75 rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.73% to settled at 36560 while prices down -1.45 rupee, now Ref. Soya oil is getting support at 723 and below same could see a test of 721 level, And resistance is now likely to be seen at 727, a move above could see prices testing 729.

Trading Ideas:

Ref. Soya oil trading range for the day is 721-729.

Ref soyoil ended with losses tracking weakness in spot demand and overseas prices amid expectation of higher supply.

According to USDA weekly export sales report, net sales of 7,300 tons for 2016-17 down by 77% from the previous week.

According to NOPA, U. S. December soybean crush fell marginally to 160.176 million bushels from 160.752 million bushels in November.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 732.75 rupees per 10 kgs.