CPO yesterday settled up 0.1% at 490 supported by a recovery in export demand, although gains were capped by prospects of higher global oilseed supplies. Exports of Malaysian palm oil products in July edged up 4.2 percent to 1,406,935 tonnes from 1,350,311 tonnes shipped during June, cargo surveyor Intertek Testing Services said. Sources said the reversal in exports trend from a 24 percent decline in the July 1-15 period provided some support for palm oil prices, which were on track for a 5.2 percent monthly loss amid projections for a bumper soy crop in the U. S. Midwest. Nearly 25 crude palm oil refining units are facing the threat of closure because their refining business has come down sharply following the government's decision to impose a lower import duty on crude palm oil. The duty differential between imported crude palm oil and refined palm oil has now fallen to 5% from the earlier 7.5%. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 5.43% to settled at 4990 while prices up 0.5 rupee, now CPO is getting support at 486.5 and below same could see a test of
483 level, And resistance is now likely to be seen at 496, a move above could see prices testing 502.

Trading Ideas:

CPO trading range for the day is 483.1-502.1.

Crude palm oil gained supported by a recovery in export demand, although gains were capped by prospects of higher global oilseed supplies

Exports of Malaysian palm oil products in July edged up 4.2 percent to 1,406,935 tonnes from 1,350,311 tonnes

Indonesia has set export tax for palm oil at 10.5% for August, unchanged from July's 10.5%.

Crude palm oil prices in spot market gained by Rs 7.20 and settled at 501.60 rupees.