Ref Soyaoil yesterday traded with the positive node and settled 0.5% up at 657 due to firm demand in edible oils in the physical market. Demand is rising in local markets for upcoming festive seasons. As per the SEA of India press release, dated 12 August 2011, the import of vegetable oils during July 2011 is reported at 913,179 tons compared to 800,644 tons in July 2010 i. e. up by 14.1%, consisting of 881,762 tons of edible oils and 31,417 tons of non-edible oils. Earlier, USDA report provided bullish impetus to the world edible oil markets as it has lowered the production projections for US and EU-27. At the same time lower beginning and ending stocks were also supportive for the market during short term. Good edible oil demand due to festivals and weak rupee were not allowing market to fall despite the drop in the overseas market. At the Indore spot market soyoil edged up by 0.7 rupee to 665.85 rupees 10 kgs. In yesterday's trading session Ref Soyaoil has touched the low of 653.8 after opening at 653.8, and finally settled at 657. For today's session market is looking to take support at 654.7, a break below could see a test of 652.4 and where as resistance is now likely to be seen at 658.4, a move above could see prices testing 659.8.

Trading Ideas:

Ref soyaoil trading range is 652.2-659.6.

Ref Soy oil ended higher due to firm demand in edible oils in the physical market

The import of vegetable oils during July 2011 is reported at 913,179 tons

Ref soyoil looks to take support at 654.70 and resistance at 658.40.

At the Indore spot market soyoil edged up by 0.7 rupee to 665.85 rupees 10 kgs.