Ref Soyaoil yesterday traded with the positive node and settled 0.63% up at 784.5 on short covering after prices dropped in last some session as strong production estimates and weak meal export demand. 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. 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. As per latest release from China's General Administration of Customs, the total August edible oil imports in China declined by 7.2% from the same month in last year and 11% from July to 6.49 lakh metric tonnes. While the total imports during January to August reported at 4.65 million tonnes, up 13.6% from the last year in the same month. At the Indore spot market soyoil edged down -2.3 rupees to 800.95 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 773.9 after opening at 780.1, and finally settled at 784.5. For today's session market is looking to take support at 777.3, a break below could see a test of 770 and where as resistance is now likely to be seen at 788.4, a move above could see prices testing 792.2.

Trading Ideas:

Ref soyaoil trading range for the day is 770.03-792.23.

Ref Soyaoil gained on short covering after prices dropped in last some session as strong production estimates weighed

China is estimated to consume a record 49.86 million tons of soymeal in 2012-13 up 7.3%

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

At the Indore spot market soyoil edged down by -2.3 rupee to 800.95 rupees 10 kgs.