Ref.Soyaoil on NCDEX settled up by 1.35% at 710.3 as demonetisation created supply worries in local market while US bio-fuel target triggered demand. Soy oil prices in overseas rose over 6% to test new contract high after the US Environmental Protection Agency (EPA) raised the target for total renewable fuel use for 2017. The new target was much higher than market expectations at 19.28 billion gallons, up from this year's 18.11 billion gallons. The USDA estimates U S soy oil ending stocks for 2016-17 season at 1.658 billion lbs these are expected to revise downwards. World vegetable-oil inventories were seen falling 7.1% to 18.07m tons this year, USDA said Nov. 9. US inventories held by industry processors unexpectedly fell m/m in Oct., NOPA members said Nov 15. The U.S. Department of Agriculture (USDA) confirmed that private exporters sold 30,000 tonnes of soyoil to China in the last day. 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 707.55 rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 3.44% to settled at 49080 while prices up 9.45 rupee, now Ref.Soya oil is getting support at 693 and below same could see a test of 676 level, And resistance is now likely to be seen at 720, a move above could see prices testing 730.

Trading Ideas:

Ref.Soya oil trading range for the day is 676-730.

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

US inventories held by industry processors unexpectedly fell m/m in Oct., NOPA members said Nov 15.

The U.S. Department of Agriculture (USDA) confirmed that private exporters sold 30,000 tonnes of soyoil to China in the last day.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 707.55 rupees per 10 kgs.