Ref Soyaoil yesterday traded with the positive node and settled 0.68% up at 728.6 on strong demand from bulk users who preferred soyoil over palm oil in the winter season. Demand is strong for soyoil due to winter season. Consuming industry is replacing palm oil by soyoil in northern India. India has slapped a 2.5 percent import duty on crude edible oils, a move taken to stem overseas purchases by the world's top vegetable oil buyer and protect its domestic oilseed growers. Firm spot market demand keeps futures market sentiments firm particularly in the near month contracts. Ahead of marriage season and upcoming festivals like “Holi” the bulk buyers are aggressively buying in physical markets. Thus it appears that near month contracts may witness more buying than far month contracts. Import duty on crude edible oils is increased by 2.5% from zero. On refined edible oils, it is unchanged. Currently 7.5% duty is imposed on refined edible oils. At the Indore spot market soyoil edged up 6.05 rupees to 751.95 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 723.15 after opening at 725, and finally settled at 728.6. For today's session market is looking to take support at 724.2, a break below could see a test of 719.7 and where as resistance is now likely to be seen at 732, a move above could see prices testing 735.4.

Trading Ideas:

Ref soyaoil trading range for the day is 719.73-735.43.

Ref soyaoil gains on strong demand from bulk users who preferred soyoil over palm oil in the winter season.

Ahead of marriage season and upcoming festivals like “Holi” the bulk buyers are aggressively buying in physical markets.

Firm spot market demand keeps futures market sentiments firm particularly in the near month contracts.

At the Indore spot market soyoil edged up by 6.05 rupee to 751.95 rupees 10 kgs.