Crude palm Oil settled up by 1.62% at 383 due to pickup in domestic demand and restricted supplies from producing belt. However upside seen limited due to higher supply in domestic market following robust imports data. Crude palm oil imports climbed to 765,865 tons in July, its highest in two-month, compared to 527,648 tons in the same period a month ago, data release from the Solvent Extractors Association (SEA) of India showed. Meanwhile, CPO output in Indonesia, the world's largest CPO producer and exporter, may decline by 20% to 27.5 million tons in 2016 due to the negative impact of the El Nino weather phenomenon. Malaysia, kept its crude palm oil export tax for September at zero percent, extending duty-free exports from August. Indonesia's CPO exports likely slumped in coming months due to a new levy on shipments. The output continued to climb for a fifth month. Indonesia's July production recorded at 2.856 million tonnes, versus 2.8 million tonnes in June. Indonesian production is likely to rise more in August, while exports expected to remain weak due to weak global economic sentiment. According to SEA, The imports have raise m-o-m in July to 9.76 lakh tonnes (lt) compared to 7.34lt. India bought 6.83mt of palm oil during Nov-Jul, up 22 % from same period last year. Technically market is under short covering as market has witnessed drop in open interest by -18.41% to settled at 5506 while prices up 6.1 rupee, now CPO is getting support at 377 and below same could see a test of 370.9 level, And resistance is now likely to be seen at 387.6, a move above could see prices testing 392.1.

Trading Ideas:

CPO trading range for the day is 370.9-392.1.

Crude palm oil prices gained due to pickup in domestic demand and restricted supplies from producing belt.

However upside seen limited due to higher supply in domestic market following robust imports data.

Crude palm oil imports climbed to 765,865 tons in July, its highest in two-month, compared to 527,648 tons in the same period a month ago.

Crude palm oil prices in spot market gained by 3.20 rupees and settled at 372.50 rupees.