Ref.Soyaoil on NCDEX settled down by -0.24% at 645.3 tracking weakness in spot demand on reports of lowering import duty. There is still muted physical demand from stockists on excess availability with them. Earlier, Indian government increase the tariff value of crude soy oil by almost 9.5% to $848 per tonnes also support prices at higher levels. U.S. oilseed production for 2016/17 is projected at 124.3 million tons, up 4.1 million from last month with higher soybean, peanut, and cottonseed production. Soybean production is projected at a record 4,201 million bushels, up 141 million due to a higher yield forecast. Soybean supplies are raised with higher production more than offsetting lower beginning stocks. Despite higher crush and exports, 2016/17 soybean ending stocks are projected at 365 million bushels, up 35 million from last month due to higher supplies. Global oilseed production for 2016/17 is projected at 544.5 million tons, up 1.0 million from last month. A reduction for rapeseed is offset with gains for soybeans, sunflowerseed, peanuts, and cottonseed. Lower soybean production forecasts for Brazil, India, and Canada are more than offset by higher production for the United States and China. Changes for 2015/16 include higher exports and lower ending stocks. Exports are increased 60 million to a record 1,940 million bushels based on official trade through July and indications from record high August export inspections. At the Indore spot market in Madhya Pradesh, soyoil was steady at 640 rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -7.57% to settled at 55290 while prices down -1.55 rupee, now Ref.Soya oil is getting support at 640 and below same could see a test of 636 level, And resistance is now likely to be seen at 648, a move above could see prices testing 652.

Trading Ideas:

Ref.Soya oil trading range for the day is 636-652.

Ref soyoil prices ended with losses tracking weakness in spot demand on reports of lowering import duty.

There is still muted physical demand from stockists on excess availability with them.

Global oilseed production for 2016/17 is projected at 544.5 million tons, up 1.0 million from last month.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 640 rupees per 10 kgs.