Ref soyaoil yesterday traded with the negative node and settled -0.18% down at 807.9 on some profit booking but downside was limited as a drop in the rupee and good demand in the spot market due to festivals supported prices. Overall demand is expected to pick up which will support the market sentiments in medium term. World market sentiments will continue to witness volatility as the US poor soybean crop will induces the bullish impetus in the market however expectation of record crop in the South American countries will put pressure on the prices in coming days. High inventory levels and dampened prices of shale oil is supposed to bring down India's export of guar gum by 20%, says media reports. Vietnam feed mills have bought 40,000 tons of soymeal from Argentina for around $685 a ton including cost and freight.

The trade follows recent Thai purchases of up to 1 million tons, as Asian buyers resume buying after high prices kept them away for more than two months. At the Indore spot market soyoil edged up 4.65 rupees to 802.65 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 804.8 after opening at 810.3, and finally settled at 807.9. For today's session market is looking to take support at 805, a break below could see a test of 802.1 and where as resistance is now likely to be seen at 810.6, a move above could see prices testing 813.2.

Trading Ideas:

Ref soyaoil trading range for the day is 802.13-813.23.

Ref soyaoil dropped on some profit booking but downside was limited as good demand in spot market due supported prices

Overall demand is expected to pick up which will support the market sentiments in medium term.

Soybean production in 2012 is likely to be more than last year but heavy rainfall in central India remains a concern

At the Indore spot market soyoil edged up by 4.65 rupee to 802.65 rupees 10 kgs.