CPO yesterday settled up 1% at 504 as demand for the tropical oil spiked ahead of a Muslim holy festival, raising investors' expectations that stocks in the No. 2 producer will ease further. Exports of Malaysian palm oil in the first half of June surged as much as 19 percent as buyers stocked up for Ramadan in July. During Ramadan, communal feasting typically drives up consumption of the vegetable oil. Malaysia's palm oil stocks currently stand at 1.82 million tonnes, more than 5 percent lower compared to April, as exports outstripped near-stagnant output. The government on Monday said it will keep its export duty for crude palm oil in July at 4.5 percent. Investor sentiment was dampened ahead of this week's U. S. Federal Reserve policy meeting, which could see the superpower curbing its stimulus programme and potentially crimping global commodity demand. 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. As per latest release from Malaysian Palm Oil Board , Malaysia's May crude palm oil output increased by 1.30% from April to 1.38 million metric tonnes. While May exports declined by 3% to 1.41 million metric tonnes. Technically market is under short covering as market has witnessed drop in open interest by -4.35% to settled at 1363 while prices up 5 rupee, now CPO is getting support at 500.7 and below same could see a test of 497.4 level, And resistance is now likely to be seen at 506.8, a move above could see prices testing 509.6.

Trading Ideas:

CPO trading range for the day is 497.4-509.6.

Crude palm oil rose as demand spiked ahead of a Muslim holy festival, raising investors' expectations that stocks will ease further.

Exports of Malaysian palm oil in the first half of June surged as much as 19 percent as buyers stocked up for Ramadan in July.

Malaysia's palm oil stocks currently stand at 1.82 million tonnes, more than 5 percent lower compared to April.

Crude palm oil prices in spot market gained by Rs 6.40 and settled at 504.10 rupees.