Ref.Soya oil on NCDEX settled down -1.1% at 717.15 tracking weakness in spot demand on expectation of higher supply. According to USDA, Jan'17 WASDE report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month. Meanwhile the ending stock is estimated to be around 750,000 tons which was 700,000 tons in Dec'16. Moreover, soyoil stocks in US at the end of December rose 7.1% to 1.434 billion pounds compared to 1.338 billion pounds in November 2016. Stocks of soy oil in December were lower by 3.2% compared to December 2015, which was reported at 1.481 million pounds. Supported by the record high crop of about 11 million tonnes (mt), soymeal exports from India is likely to touch 2 mt on strong overseas demand and favourable pricing situation, experts noted. In a latest estimates, the Solvent Extractors Association of India (SEA) has put India’s soymeal production at 11 mt reflected in the increased crushing activities. Atul Chaturvedi, President of SEA stated, “soymeal crop, which was struggling for the past two years has re-bounded with vengeance and most likely to touch the magical figure of 11 mt. Exports of Soymeal are also looking up. We should not be too surprised if our exports cross 2 mt in Soymeal during the current oil year.” Technically market is under fresh selling as market has witnessed gain in open interest by 7.11% to settled at 39160 while prices down -8 rupee, now Ref.Soya oil is getting support at 714 and below same could see a test of 711 level, And resistance is now likely to be seen at 722, a move above could see prices testing 727.

Trading Ideas:

Ref.Soya oil trading range for the day is 711-727.

Ref soyoil ended with losses tracking weakness in spot demand on expectation of higher supply.

According to USDA report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month

Moreover, soyoil stocks in US at the end of December rose 7.1% to 1.434 billion pounds compared to 1.338 billion pounds in November 2016.

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