Ref Soyaoil yesterday traded with the negative node and settled -2.69% down at 688.8 on weak spot demand for edible oils. A strong rupee, which makes edible oil imports cheaper and at the same time reduces returns of oilmeal exporters, also weighed on sentiments. In local spot markets demand was weak for edible oils. Soyoil supplies are rising in local and overseas markets due to higher crushing of soybean in December. As per PIB, Total area under oilseeds cultivation is reported to be 80.96 lakh ha against 85.5 lakh ha last year as January 13, 2012. The country's RM seed sowing has totaled 64.83 lakh ha as on January 13, down 4.96% from 68.21 lakh ha in the year-ago period. RM seed accounts for about 70% of India's winter-season oilseed output. At the Indore spot market soyoil edged down by -10.5 rupee to 698.25 rupees 10 kgs. In yesterday's trading session Ref Soyaoil has touched the low of 686.5 after opening at 706.5, and finally settled at 688.8. For today's session market is looking to take support at 681.4, a break below could see a test of 673.9 and where as resistance is now likely to be seen at 701.4, a move above could see prices testing 713.9.

Trading Ideas:

Ref soyaoil trading range is 673.9-713.9.

Ref soyoil fell on weak spot demand for edible oils

Soyoil supplies are rising in local and overseas markets due to higher crushing of soybean in December

Total area under oilseeds cultivation is reported to be 80.96 lakh ha against 85.5 lakh ha last year

At the Indore spot market soyoil edged down by -10.5 rupee to 698.25 rupees 10 kgs.