Ref Soyaoil yesterday traded with the positive node and settled 0.14% up at 703.5 on some short covering after prices dropped on account of weak global cues and fresh supplies in the local mandis.

The latest first kharif advance estimates by government dragged the futures prices to lower levels.

The latest government data estimated the total Soyabean Kharif 2012 crop at 126.2 lakh tonnes , up 3.44 lakh tonnes from the final estimates of 2011-12. Expectations of a rise in soybean production due to an improvement in yields and higher area are pushing down prices.

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.

The country's dependence on imports of vegetable oils is likely to continue as its productivity has remained unchanged over a period of time.

At the Indore spot market soyoil edged down -11.1 rupees to 735 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 692.5 after opening at 698.5, and finally settled at 703.5.

For today's session market is looking to take support at 695.1, a break below could see a test of 686.7 and where as resistance is now likely to be seen at 709.3, a move above could see prices testing 715.1.

Trading Ideas:

Ref soyaoil trading range for the day is 686.7-715.1.

Ref gains on some short covering after prices dropped on account of weak global cues and fresh supplies.

The latest government data estimated the total Soyabean Kharif 2012 crop at 126.2 lakh tonnes

Expectations of a rise in soybean production due to an improvement in yields and higher area are pushing down prices

At the Indore spot market soyoil edged down by -11.1 rupee to 735 rupees 10 kgs.