Ref Soyaoil yesterday traded with the positive node and settled 0.08% up at 604.5 due to short covering amid tracking gains in spot market prices as expectations festivals will boost domestic demand for edible oils. 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. India is likely to produce 11.5 million tonnes of soybeans in 2012/13, compared with 10.5 million tonnes a year earlier, while its rapeseed output in the current year is likely to climb nearly 25 percent to 6.5 million tonnes. A strong rupee makes edible oil imports cheaper and at the same time trims the returns of oilmeal exporters. At the Indore spot market soyoil edged down -2.65 rupees to 649.4 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 604.2 after opening at 605, and finally settled at 604.5. For today's session market is looking to take support at 597.1, a break below could see a test of 589.6 and where as resistance is now likely to be seen at 619.1, a move above could see prices testing 633.7.

Trading Ideas:

Ref soyaoil trading range for the day is 589.6-633.7.

Ref soyaoil ended higher due to short covering amid tracking gains in spot market prices

Demand should rise due to festivals, but the continued fall in prices is prompting stockists to postpone purchases

India is likely to produce 11.5 million tonnes of soybeans in 2012/13, compared with 10.5 million tonnes a year earlier

At the Indore spot market soyoil edged down by -2.65 rupee to 649.4 rupees 10 kgs.