Crude Palm Oil yesterday traded with the negative node and settled -0.3% down at 590.5 on profit booking amid weak spot demand tracking weak overseas market although losses were capped by positive demand expectations ahead of the Muslim fasting month of Ramadan in July. Last week, palm prices were weighed down as no significant breakthrough was made in resolving Europe's debt crisis, sending the benchmark down to its lowest level this year at 2,993 ringgit per tonne. Helping to support prices this week and cap losses on Wednesday, investors are keeping a close eye on weather conditions in the United States. Also helping to boost palm prices, according to traders, was a rise in demand from India and Pakistan for Ramadan, where fasting in the day is followed by feasting in the evening. Cargo surveyors Intertek Agri Services and SGS Malaysia Bhd. are scheduled to issue Malaysia's May export estimates, widely expected to be above 1.50 million tons on the back of buying interest from the Middle East and India. In yesterday's trading session Crude Palm oil has touched the low of 589.1 after opening at 589.1, and finally settled at 590.5. For today's session market is looking to take support at 588.5, a break below could see a test of 586.5 and where as resistance is now likely to be seen at 593.1, a move above could see prices testing 595.7.

Trading Ideas:

CPO trading range for the day is 586.5-595.7.

Crude palm oil ended lower on profit booking amid weak spot demand tracking weak overseas market

Palm prices were weighed down as no significant breakthrough was made in resolving Europe's debt crisis

Cargo surveyors Intertek Agri Services and SGS Malaysia Bhd. widely expected to be above 1.50 million tons

Crude palm oil prices in spot market dropped by 1.10 rupees and settled at 585.60 rupees.