Ref Soyaoil yesterday traded with the positive node and settled 0.44% up at 807.2 tracking the strong global cues and weak Kharif sowing, however, strong Indian rupee is likely to keep upside limited. According to USDA, World soybean inventories may drop to 53.36 million tons at the end of this crop year, 24% lower than last year. U.S. is likely to see a drop in soybean production, but in India the weather is good for the crop. Indian soybean production is likely to rise above last year's level. Indian farmers have grown soybean on 10.69 million hectares as of Aug. 30, compared with 10.31 million hectares a year earlier. China to dominate global soymeal demand for the 6th consecutive year in 2012-13, on the back on rising hog herds in the country, raising exports of U.S and the other major soymeal producers. According to USDA, China is estimated to consume a record 49.86 million tons of soymeal in 2012-13 up 7.3% compared to last year and the country may have a record 690 million hogs. While, the soybean crop damage caused in the major producing regions in the globe has raised the price of soybean and its derivatives. At the Indore spot market soyoil edged up 0.65 rupees to 792.75 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 803.15 after opening at 807, and finally settled at 807.2. For today's session market is looking to take support at 803.9, a break below could see a test of 800.7 and where as resistance is now likely to be seen at 809.7, a move above could see prices testing 812.2.

Trading Ideas:

Ref soyaoil trading range for the day is 800.67-812.17.

Ref soyaoil ended with gains tracking the strong global cues and weak Kharif sowing

World soybean inventories may drop to 53.36 mln tns at the end of this crop year, 24% lower than last year

Indian farmers have grown soybean on 10.69 million hectares as of Aug. 30

At the Indore spot market soyoil edged up by 0.65 rupee to 792.75 rupees 10 kgs.