Ref. Soya oil on NCDEX settled up 0.21% at 725.05 tracking firmness in spot demand and on robust demand in export market. According to USDA weekly export sales report, Net sales of 30,900 tons for 2016/2017 were up 64% from the previous week and 41% from the prior 4-week average. According to United States Department of Agriculture (USDA) January estimate, U. S 2016/17 ending stocks of soy oil is estimated to rise to 1,652 million lbs from
1,522 million lbs in January estimate. Opening stocks were unchanged at 1,687 million lbs. Production of soy oil in 2016/17 is estimated to rise to 22390 million lbs from 22,290 million lbs. Imports in 2016/17 are unchanged at 275 million lbs. Biodiesel use in 2016/17 was unchanged at 6,200 million lbs. Food, feed and other industrial use in 2016/17 were unchanged at 14,350 million lbs. Exports in 2016/17 are kept unchanged at 2,150 million lbs. Average price range estimate is increased to 34 - 37 cents/lbs from 34.5-37.5 cents/lbs in January estimate. Rise in end stock is due to higher production of soy oil on higher recovery of soy oil prom soybean. According to United States Department of Agriculture (USDA) January estimate, India's 2016/17 soy oil end stocks is estimated to rise to 0.45 MMT compared to 0.37 MMT in December estimate. Opening stocks are increased to 0.53 MMT from 0.45 MMT in January estimate. Technically market is under fresh buying as market has witnessed gain in open interest by 4.63% to settled at 43830 while prices up 1.5 rupee, now Ref. Soya oil is getting support at 723 and below same could see a test of 722 level, And resistance is now likely to be seen at 727, a move above could see prices testing 730.

Trading Ideas:

Ref. Soya oil trading range for the day is 722-730.

Ref soyoil ended with gains tracking firmness in spot demand and on robust demand in export market.

According to USDA weekly export sales report, Net sales of 30,900 tons for 2016/2017 were up 64% from the previous week.

According to USDA January estimate, India's 2016/17 soy oil end stock is estimated to rise to 0.45 MMT.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 730 rupees per 10 kgs.