Ref.Soyaoil on NCDEX settled down by -0.26% at 714.9 tracking weakness in spot demand on profit booking after prices gained supported by strong demand from crushers in global market. NOPA said US soybean crush rises to 164.64 million bushels in October'16 compared to 158.895 million bushels a year earlier. United States Environmental Protection Agency (EPA) raised 2017 bio-fuel target amid robust demand in export market. The new target was much higher than market expectations at 19.28 billion gallons compared to 18.11 billion gallons in this year. The total includes 15 billion gallons for conventional bio-fuel, mainly corn-based ethanol, and 4.28 billion gallons for the advanced bio-fuels mandate, which includes soy-based bio-diesel. Roughly 25% of US soybean oil production used for output of bio-diesel. The United States Department of Agriculture (USDA) estimated US soyoil ending stockpiles for 2016-17 season at 1.658 billion lbs which is expected to revised down further. India's rabi oilseed acreage jumped 15% thanks to attractive prices in the market and government's announce of increased in minimum support price (MSP), said a senior official of agriculture ministry. India's rabi oilseeds sowing stood at 5.61 million up from 4.87 million hectare a year on the back of increased acreage of mustard seed, agriculture ministry data showed. Reports of plants not buying soybean for producing soya oil (due to limited cash liquidity in the market, and disparity in crushing soybean to produce soya oil) too supported prices. At the Indore spot market in Madhya Pradesh, soyoil was steady at 714 rupees per 10 kgs.Technically now Ref.Soya oil is getting support at 713 and below same could see a test of 711 level, And resistance is now likely to be seen at 717, a move above could see prices testing 719.

Trading Ideas:

Ref.Soya oil trading range for the day is 711-719.

Ref Soyoil prices dropped tracking weakness in spot demand on profit booking after prices gained supported by strong demand from crushers.

NOPA said US soybean crush rises to 164.64 million bushels in October'16 compared to 158.895 million bushels a year earlier.

USDA estimated US soyoil ending stockpiles for 2016-17 season at 1.658 billion lbs which is expected to revised down further.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 714 rupees per 10 kgs.