Ref Soyaoil yesterday traded with the negative node and settled -0.98% down at 700.3 on a drop in edible oil prices overseas and expectations of record palm oil imports in January. Imports would be higher, but traders want to know the quantum of the rise. Soybean supplies are decreasing in the local spot markets as farmers are holding back their produce in the expectation that prices would rise during the summer months. Oil meal exports of India rises by almost 40% to 7.68 lakh ton in January this year, according to industry body Solvent Extractors Association of India (SEA). The country had exported 5.50 lakh ton of oilmeals, which is mainly used as animal feed, in January 2012. In the first 10 months of this fiscal, exports declined by 18% to 36.79 lakh ton compared to 44.85 lakh ton in the year-ago period. “Total export of oilmeals during April 2012 to January 2013 has reduced and is reported at 3,678,861 ton compared to 4,485,197 ton during the same period of last year, mainly due to reduced demand from overseas market,” said SEA. At the Indore spot market soyoil edged down -0.8 rupees to 734.2 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 697.65 after opening at 705, and finally settled at 700.3. For today's session market is looking to take support at 697, a break below could see a test of 693.6 and where as resistance is now likely to be seen at 704.3, a move above could see prices testing 708.3.

Trading Ideas:

Ref soyaoil trading range for the day is 693.63-708.33.

Ref soyaoil dropped on a drop in edible oil prices overseas and expectations of record palm oil imports in January.

Soya supplies are decreasing in the local spot markets as farmers are holding back their produce.

Oil meal exports of India rises by almost 40% to 7.68 lakh ton in January this year.

At the Indore spot market soyoil edged down by -0.8 rupee to 734.2 rupees 10 kgs.