CPO yesterday settled up 0.2% at 501.8 tracking firmness in spot demand and overseas prices higher exports fuelled hopes of a further drop in stockpiles. The country's palm oil exports in June increased 7 percent to 1,350,311 tonnes from 1,262,281 tonnes shipped during May, cargo surveyor Intertek Testing Services said. Palm oil stocks in Malaysia, the world's second largest producer of the vegetable oil, dropped to 1.82 million tonnes in May, the lowest in nearly a year, and a further decline would help prop up prices. 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. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during June 1-10 increased by 10.30% from the same period in May to 4.19 lakh metric tonnes. India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April, pushing total purchases of the tropical oil up for the first time since January on lower prices and tight domestic supplies. Technically market is under short covering as market has witnessed drop in open interest by -2.31% to settled at 4105 while prices up 1 rupee, now CPO is getting support at 498.3 and below same could see a test of 494.7 level, And resistance is now likely to be seen at 505.6, a move above could see prices testing 509.3.

Trading Ideas:

CPO trading range for the day is 494.8-509.4.

CPO gains tracking firmness in spot demand and overseas prices higher exports fuelled hopes of a further drop in stockpiles.

The country's palm oil exports in June increased 7 percent to 1,350,311 tonnes from 1,262,281 tonnes shipped during May

India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April

Crude palm oil prices in spot market gained by Rs 0.30 and settled at 502.00 rupees.