Ref. Soyaoil on NCDEX settled up by 1.37% at 727.65 as demonetisation created supply worries in local market while US bio-fuel target triggered demand. Vegetable oils have been leading the rally recently on tightening global supplies. World vegetable-oil inventories were seen falling 7.1% to 18.07m tons this year, USDA said Nov. 9. Scarcity of stocks in whole sale markets due to lean season were supporting the prices. European Union's soybean crushing for the year to August 2017 are likely to reach record high volumes but Europe's growing soybean harvest will limit import demand. Low stock of palm oil at domestic ports and report of delayed shipment from producing countries due to slow buying from Indian buyers amid liquidity crunch after demonetization has capped the downside in price. 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. 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. "Higher prices in the open market and hike in MSP encouraged farmers to grow more oilseeds," the official said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 717.65 rupees per 10 kgs. Technically now Ref. Soya oil is getting support at 717 and below same could see a test of 707 level, And resistance is now likely to be seen at 736, a move above could see prices testing 745.

Trading Ideas:

Ref. Soya oil trading range for the day is 707-745.

Ref soyoil prices dropped as demonetisation created supply worries in local market while US bio-fuel target triggered demand.

Vegetable oils have been leading the rally recently on tightening global supplies.

World vegetable-oil inventories were seen falling 7.1% to 18.07m tons this year, USDA said Nov. 9.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 717.65 rupees per 10 kgs.