Soyoil futures surged 2-2.5% during yesterday's trading session mainly because of brisk buying by stockiest and shortage in ready segment, Soyabean and Cottonseed oil recorded a sharp rise on good seasonal demand from local traders amid tight supply from local crushing plants. RM seed too saw some short covering during yesterday's trading session.

U. S. soybean futures on the Chicago Board of Trade rose on Tuesday on a sliding dollar and spillover strength from corn amid worries of a crop-killing freeze next week. Freeze worries triggered short-covering in corn, which spilled over to soybeans. Scattered showers in the U. S. Mississippi River Delta should continue to stall the soybean harvest this week.

USDA said 40 percent of the soybean crop dropped its leaves, a sign of maturity, as of Sept. 20, big jump from just 17 percent the week before but behind the five-year average of 58 percent. Traders more concerned about maturity of corn crop as soybeans showed a big pick up in maturity over the past week

About 9000-10000 bags of soybeans were reported for auction in major mandis like Vidarbha and Nagpur, whereas arrivals in Indore mandi stood around 10000-11000 bags.

Key soybean areas of west-central India have seen an increase thunderstorm activity since late last week, helping to ease stress to this crop after an earlier hot/dry spell. Rain is needed and cooler temperatures as well to prevent significant declines to yield potential.

Oilseed complex is expected to trade sideways to up and we recommend buying at dips.