CPO yesterday settled up 1.03% at 508.5 tracking firmness in spot demand amid weak rupee. Rising shipments during June 1-25 over the same days in May, indicated by cargo surveyor data, provided some support to the market. Cargo surveyor Intertek Testing Services reported a 9.6 percent monthly increase in shipments for the June 1-25 period, supported by a weaker ringgit and higher festive demand from India and Pakistan ahead of Ramadan in July. Consumption of the edible oil typically rises during the holy month as Muslims gather for communal feasts in the evenings. Another cargo surveyor, Societe Generale de Surveillance, will release export data for the same period. Palm oil prices have fallen in four out of the last five sessions but analysts expect stockpiling and bargain hunting to limit the price slump in the near term. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during June 1-25 stood at 1.67 million metric tonnes, up 9.60% over the same period in May, 2013. Technically market is under short covering as market has witnessed drop in open interest by -11.63% to settled at 4012 while prices up 5.2 rupee, now CPO is getting support at 501.9 and below same could see a test of 495.2 level, And resistance is now likely to be seen at 511.9, a move above could see prices testing
515.2.

Trading Ideas:

CPO trading range for the day is 494.9-514.9.

Crude palm oil ended with gains tracking firmness in spot demand amid weak rupee.

Rising shipments during June 1-25 over the same days in May provided some support to the market.

Malaysia's palm oil exports during June 1-25 stood at 1.67 million metric tonnes, up 9.60%.

Crude palm oil prices in spot market gained by Rs 2.00 and settled at 506.30 rupees.