CPO yesterday settled up 0.1% at 499 tracking weakness in spot demand amid profit booking. Prices were also supported by strong exports, buoyed by demand ahead of a Muslim festival where daily communal feasts typically drives up consumption. Exports in June 1-25 rose between 6-10 percent compared to the same period in May. Traders will be looking for total palm oil exports in June, which will be released next Monday, to gauge demand of the tropical oil. Some traders expect the last-minute festive buying to prop exports up into the first half of July. But despite the festive season lifting exports and easing stocks to a year low 1.82 million tonnes, palm oil prices could see a sharper-than-expected drop in 2013 from slowing demand in key markets Europe and Asia. 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 . As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during June 1-20 augmented by 16% from the same period in May to 9.28 lakh metric tonne. Technically market is under short covering as market has witnessed drop in open interest by -3.51% to settled at 3570 while prices up 0.5 rupee, now CPO is getting support at 496.95 and below same could see a test of 494.90 level, And resistance is now likely to be seen at 500.90, a move above could see prices testing 502.70.

Trading Ideas:

CPO trading range for the day is 496.1-505.1.

CPO yesterday settled at 499 tracking weakness in spot demand amid profit booking.

Exports in June 1-25 rose between 6-10 percent compared to the same period in May

Traders will be looking for total palm oil exports in June, which will be released Monday, to gauge demand of the tropical oil.

Crude palm oil prices in spot market dropped by Rs 4.60 and settled at 501.70 rupees.