Ref. Soya oil on NCDEX settled up 2.16% at 665.9 on short covering tracking firmness in spot demand and other oilseed counters. Prices also seen supported amid limited arrivals of soyabean in production areas due to erratic weather. However, total production of kharif oilseeds in the country is estimated at 23.36 million tonnes which is significantly higher than the production of 16.59 million tonnes during 2015-16. This year production of Kharif oilseed is also higher by 2.33 million tonnes than the average production of last five years. India 2016-17 edible production may rise 20% on favourable weather condition this year. Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year. For the first half of the current financial year, cumulative shipments were down 44 per cent at 4,21,741 tonnes over the year-ago period on account of lower availability of seeds for crushing and continued disparity in prices in international markets, the Solvent Extractors Association of India said in a statement. US oilseeds processors have crushed 4.219 million tonnes (140.6 million bushel) of soybean during August 2016 which is down from 4.337 million tonnes during the corresponding period last year and down from 4.604 million tonnes processed in July 2016. The crushing is lightly lower than the average of 4.231 million tonnes, reported by USDA. Technically market is under short covering as market has witnessed drop in open interest by -0.77% to settled at 55060 while prices up 14.1 rupee, now Ref. Soya oil is getting support at 656 and below same could see a test of 646 level, And resistance is now likely to be seen at 672, a move above could see prices testing 678.

Trading Ideas:

Ref. Soya oil trading range for the day is 647-677.

Ref soyoil prices gained on short covering tracking firmness in spot demand and other oilseed counters.

Prices also seen supported amid limited arrivals of soyabean in production areas due to erratic weather.

India 2016-17 edible production may rise 20% on favourable weather condition this year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 646.55 rupees per 10 kgs.