Ref Soyaoil yesterday traded with the positive node and settled 0.55% up at 700.75 on slight covering tracking firm spot demand but declining overseas demand for soymeal kept the gains in check. Edible oil imports of China rises 53% y-o-y in Dec to 1.1 Mt. The total imports during January to December reported at 8.44 million tonnes, up 29% from the last year in the same month. The global soya oil production in 2012-13 is also raised to 43.42 million tonnes, up 0.20 million tonnes from the previous month. This is mainly due to strong crushing in China and United States. Accelerated by economic growth, China has rapidly become the world's largest crusher of soybeans, capturing the value added from processing beans into oil and meal. Demand for soy oil in the food sector has remained strong, supported by rising incomes and changing diets. Rising production of soy oil has eroded the need for imports. While total soyaoil production in India is estimated lower at 1.76 million tonnes in 2012-13. At the Indore spot market soyoil edged up 1.8 rupees to 734.4 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 694.55 after opening at 696.75, and finally settled at 700.75. For today's session market is looking to take support at 695.6, a break below could see a test of 690.5 and where as resistance is now likely to be seen at 704.9, a move above could see prices testing 709.

Trading Ideas:

Ref soyaoil trading range for the day is 690.45-708.95.

Ref soyaoil ended with gains on slight covering tracking firm spot demand but declining demand for soymeal kept gains in check.

The total imports during January to December reported at 8.44 million tonnes, up 29% from the last year in the same month

Edible oil imports of China rises 53% y-o-y in Dec to 1.1 Mt.

At the Indore spot market soyoil edged up by 1.8 rupee to 734.4 rupees 10 kgs.