Ref. Soyaoil on NCDEX settled up by 0.96% at 670.75 amid strong demand in export market. Moreover, forecast of dry weather in Rajasthan, MP and Maharashtra may hasten the harvesting of soybean. India 2016-17 edible production may rise 20% on favourable weather condition this year. Domestic edible oil production 2016-2017 is seen at 6.97 million tons compared to 5.82 million tons last year. Edible oil consumption to rise by 6% to 22.15 million tons in the year while imports are expected to increase by nearly 7% to 15.48 million tons compared to 14.58 million tons in the year ago period. Kharif and Rabi production of these oilseeds at 23.43 million ton compared to 5.72 million ton a year ago. 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. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 656.25 rupees per 10 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 9.68% to settled at 65180 while prices up 6.35 rupee, now Ref. Soya oil is getting support at 666 and below same could see a test of 659 level, And resistance is now likely to be seen at 676, a move above could see prices testing 679.

Trading Ideas:

Ref. Soya oil trading range for the day is 659-679.

Ref soyoil prices ended with gains amid strong demand in export market.

Moreover, forecast of dry weather in Rajasthan, MP and Maharashtra may hasten the harvesting of soybean.

Oilmeal exports for September fell 35 per cent to 90,907 tonnes from 1,39,649 tonnes in the corresponding period last year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 656.25 rupees per 10 kgs.