Crude palm Oil settled up by 1.58% at 386.1 due to firming trend at spot market on rising demand amid restricted supplies from producing belts. Malaysia palm oil exports during September 1-10 jumped 3.7% from a month earlier on improved demand and output of the oil also jumped 13% in August. Malaysia palm oil exports climbed to 517,600 tons in Sep 1-10 compared to 498,993 tons for the same period a month ago, DowJones reported citing cargo surveyor Intertek Testing Services (ITS). Malaysia, kept its crude palm oil export tax for September at zero percent, extending duty-free exports from August. According to ITS, exports of Malaysian palm oil products for Aug 1-25 rose 10.75% to 12.8 lt from 11.52 lt shipped during July 1-25. Moreover, Palm oil stockpiles in Malaysia rose 5.3% to 2.265mt in July from a month earlier and 36.7% from a year ago. 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. Technically market is under short covering as market has witnessed drop in open interest by -13.93% to settled at 4282 while prices up 6 rupee, now CPO is getting support at 382.2 and below same could see a test of 378.3 level, And resistance is now likely to be seen at 388.9, a move above could see prices testing 391.7.

Trading Ideas:

CPO trading range for the day is 378.3-391.7.

Crude palm oil prices gained due to firming trend at spot market on rising demand amid restricted supplies from producing belts.

Malaysia palm oil exports during September 1-10 jumped 3.7% from a month earlier on improved demand.

Malaysia palm oil exports climbed to 517,600 tons in Sep 1-10 compared to 498,993 tons for the same period a month ago.

Crude palm oil prices in spot market gained by 5.00 rupees and settled at 381.40 rupees.