Ref Soyaoil yesterday traded with the negative node and settled -4% down at 626.95 hammered by weak demand in the local spot markets as buyers deferred purchases. Demand should rise due to festivals, but the continued fall in prices is prompting stockists to postpone purchases. India's 2012/13 edible oil imports could rise 4.2 percent to a record high, with palm oil cornering the bulk of that. Soybeans arrivals have started in the top producing Madhya Pradesh state and are likely to rise significantly this month and peak in November. As per the latest release from U.S. Department of Agriculture, U.S has reported the sale of 110,000 metric tonnes of soybeans by private exporters to China for delivery in the 2012-13 marketing year that began Sept. 1. USDA also reported weekly soybean export sales at 799,500 metric tonnes for the 2012-13 marketing year that began Sept. 1. The sales were at the top of trader expectations that ranged from 600,000 metric tonnes to 800,000 metric tonnes. The USDA reported net weekly soymeal export sales at 436,400 metric tonnes. The sales were above traders' expectations that ranged from 175,000 metric tonnes to 300,000 metric tonnes. At the Indore spot market soyoil edged down -54.45 rupees to 680.55 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 626.95 after opening at 647.1, and finally settled at 626.95. For today's session market is looking to take support at 620.2, a break below could see a test of 613.5 and where as resistance is now likely to be seen at 640.4, a move above could see prices testing 653.8.

Trading Ideas:

Ref soyaoil trading range for the day is 613.52-653.82.

Ref soyaoil dropped hammered by weak demand in the local spot markets as buyers deferred purchases.

Demand will remain sluggish until we see prices stabilize at some point.

India's 2012/13 edible oil imports could rise 4.2 percent to a record high, with palm oil cornering the bulk of that.

At the Indore spot market soyoil edged down by -54.45 rupee to 680.55 rupees 10 kgs.