Ref.Soya oil on NCDEX settled down -0.58% at 646.5 tracking weakness in spot demand amid spurting expectation of higher production in global market. According to United States Department of Agriculture (USDA) August estimates, U.S 2016/17 soy oil end stocks fell by 8.1 percent m-o-m to 1,755 million lbs from 1,910 million lbs in July estimate. Opening stocks are reduced to 1,950 million lbs from 2,375 million lbs in July estimate. Production of soy oil in 2016/17 is increased to 22,405 million lbs v/s 22,235 million lbs in July estimate. Imports in 2016/17 are unchanged at 250 million lbs. According to National Oilseed Processors Association (NOPA), U.S. July soybean crush fell to 143.715 million bushels from 145.050 million bushels in June, down by 1 percent m-o-m. Crush of soybean in July 2015 was 145.227 million bushels. Production of soy oil in U.S. in July fell marginally to 1.687 billion lbs from 1.692 billion lbs in June 2016. Production in July 2015 was 1.632 billion lbs. Soy oil stocks in U.S. at the end of July fell by 12.2 percent to 1.743 billion lbs compared to 1.985 billion lbs in June 2016. Stocks of soy oil in July 2015 were higher by 7.24 percent compared to July 2015, which was reported at 1.624 million lbs. Yield fell to 11.74 lbs/bushel in June from 11.66 lbs/bushel in June. Yield in July 2015 was reported at 11.24 lbs/bushel. Technically market is under fresh selling as market has witnessed gain in open interest by 0.67% to settled at 53860 while prices down -3.8 rupee, now Ref.Soya oil is getting support at 645 and below same could see a test of 643 level, And resistance is now likely to be seen at 650, a move above could see prices testing 653.

Trading Ideas:

Ref.Soya oil trading range for the day is 643-653.

Ref soyoil dropped tracking weakness in spot demand amid spurting expectation of higher production in global market.

According to USDA August estimates, U.S 2016/17 soy oil end stocks fell by 8.1 percent m-o-m.

According to NOPA), U.S. July soybean crush fell to 143.715 million bushels from 145.050 million bushels in June, down by 1 percent m-o-m

At the Indore spot market in Madhya Pradesh, soyoil was steady at 637.65 rupees per 10 kgs.