Ref Soyaoil yesterday traded with the positive node and settled 0.18% up at 744 tracking firm overseas markets, amid an estimated drop in local rapeseed output. Risks are being priced in ahead of USDA acreage and inventory reports due next Friday. Support also comes from hopes for more Chinese demand and expectations for a smaller South American soy crop. Argentina's 2011-12 soybean crops will likely total 44 million metric tons, the agriculture ministry said in its monthly crop report. Last month, the government had forecast production of 43.5 million to 45 million tons. Early drought hit yields hard, but steady showers since late January have stemmed the damage. Farmers are just starting to harvest the soy crop. Argentina leads global soyoil and soy meal exports and ranks third in soybean exports. At the Indore spot market soyoil edged up by 4.6 rupee to 738.85 rupees 10 kgs. In yesterday's trading session Ref Soyaoil has touched the low of 743.6 after opening at 744.9, and finally settled at 744. For today's session market is looking to take support at 742.4, a break below could see a test of 740.7 and where as resistance is now likely to be seen at 746.9, a move above could see prices testing 749.8.

Trading Ideas:

Ref soyaoil trading range for the day is 740.78-749.88.

Ref soyoil rose tracking firm overseas markets, amid an estimated drop in local rapeseed output

Support comes from hopes for more Chinese demand and expectations for a smaller South American soy crop.

Argentina's 2011-12 soybean crops will likely total 44 million metric tons

At the Indore spot market soyoil edged up by 4.6 rupee to 738.85 rupees 10 kgs.