Ref Soyaoil yesterday traded with the negative node and settled -0.41% down at 697 tracking weakness in spot demand as prices failed to sustain on higher levels due to lack of buying support. Vegetable oil imports declined by over 29 per cent to 6.54 lakh tonnes in April as inventories piled up on sluggish local demand. The country had imported 9.25 lakh tonnes (lt) in the same month last year, according to the Solvent Extractors' Association of India. The decline was led by the drop in palm oil imports. Imports slowed down in April as inventory was huge due to excessive purchase of vegetable oils from the global market in the last five months. Currently, 18.20 lt of vegetable oils are lying at ports and in pipelines, according to the data. In April, refined palm oil imports doubled to 2.5 lt from 1.37 lt in March. Of total imports in April this year, edible oil comprised 6.41 lt, while 13,500 tonnes were non-edible oil. Moreover, weak export demand of soyameal is also negative factor for soyabean market. As per the latest release from Solvent Extractors' Association of India ( SEA of India ), the total exports of soyameal during April 2013 stood at 0.99 lakh tonnes compared to 3.13 lakh tonnes in April 2012 i. e. down by 68.37%. At the Indore spot market soyoil edged down -2.45 rupees to 725.5 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 694.2 after opening at 697.5, and finally settled at 697. For today's session market is looking to take support at 694.7, a break below could see a test of 692.4 and where as resistance is now likely to be seen at 698.8, a move above could see prices testing 700.6.

Trading Ideas:

Ref soyaoil trading range for the day is 692.4-700.6.

Ref soyaoil ended with losses tracking weakness in spot demand as prices failed to sustain on higher levels.

Vegetable oil imports declined by over 29 per cent to 6.54 lakh tonnes in April as inventories piled up on sluggish local demand.

Imports slowed down in April as inventory was huge due to excessive purchase of vegetable oils from the global market.

At the Indore spot market soyoil edged down by -2.45 rupee to 725.5 rupees 10 kgs.