CPO yesterday settled down -0.87% at 479.6 tracking weakness in spot demand and overseas prices as investors fretted about potential bumper soy crops lifting global edible oil supplies, but a weaker local currency curbed losses. A rise in global oilseed supplies does not bode well for palm as it struggles with slackening demand from top consumers India and China. Exports in July 1-25 fell 6-7 percent compared to a month ago, cargo surveyors said last Thursday. Sources say exports for the whole month of July, due on Wednesday, could fall, although declines could be less steep than initially estimated. Exports of Malaysian palm oil products from July 1 to 25 fell 7 percent to 1,085,392 tons when compared to 1,167,266 tons shipped during June 1 to 25 period, as per industry sources. Indonesia has set export tax for palm oil at 10.5% for August, unchanged from July's 10.5%.India's refined palm oil imports declined 20.7 percent in June to 296, 230 tons from a record high of 373,837 tons in May. Last week, crude palm oil and palm oil prices recorded a weak trend in the global market on speculation that the upcoming palm oil production season may cause to build large palm oil inventories in Malaysia, the world's second largest palm oil producer after Indonesia. World palm oil production may increase 4.4 percent to a 58.2 mn tons when compared to the previous season amid higher than expected palm oil production from Indonesia and Malaysia, the Oil World said. However, palm oil reserves in Malaysia fell 37 percent to 1.65 mn tons in June from a record in December, according to the data released by the palm oil board. Now CPO is getting support at 476.3 and below same could see a test of 472.9 level, And resistance is now likely to be seen at 483.5, a move above could see prices testing 487.3.

Trading Ideas:

CPO trading range for the day is 472.6-487.

CPO edged lower tracking weakness in spot and overseas prices as investors fretted about potential bumper soy crops lifting global edible oil supplies.

A rise in global oilseed supplies does not bode well for palm as it struggles with slackening demand from India and China

Sources say exports for July, due on Wednesday, could fall, although declines could be less steep than initially estimated.

Crude palm oil prices in spot market dropped by Rs 2.80 and settled at 493.90 rupees.