Crude Palm oil yesterday traded with the positive node and settled 1.1% up at 589 on firm spot demand along with rising overseas demand. Demand appeared to be firm. The demand outlook was still uncertain however, and traders were looking for more news on Europe. Another positive for edible oils was an upturn in demand from India and Pakistan for Ramadan, where fasting in the day is followed by feasting in the evening. Investors are also keeping a close eye on weather patterns, where dry conditions in the United States could hurt the soybean crop, and a possible return of the El Nino weather pattern that may curb palm oil output in Southeast Asia. Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance both reported a slight increase in shipments for Malaysian palm oil for May 1-20. Still, forecasts for global vegetable oil supplies may help support palm oil and prevent a fall to MYR3,000/ton. Macroeconomic sentiment will continue to dominate palm oil's market direction for the rest of the week, she said, although she cautioned that the market remains vulnerable to further liquidation if doubts about euro-zone debt problems intensify. In yesterday's trading session Crude Palm oil has touched the low of 581.7 after opening at 583.5, and finally settled at 589. For today's session market is looking to take support at 583.9, a break below could see a test of 578.7 and where as resistance is now likely to be seen at 592, a move above could see prices testing 594.9.

Trading Ideas:

CPO trading range for the day is 578.73-594.93.

Crude Palm Oil rose on firm spot demand along with rising overseas demand.

The demand outlook was still uncertain however, and traders were looking for more news on Europe.

Still, forecasts for global vegetable oil supplies may help support palm oil and prevent a fall to MYR3,000/ton.

Crude palm oil prices in spot market gained by 4.40 rupees and settled at 581.40 rupees.