CPO on MCX settled up 0.43% at 519.7 on increasing demand and speculation of lower supply from top producers. Palm oil refiners in Malaysia are boosting purchases of Indonesian crude palm oil to meet festive demand as there is tight local supply. Prices of palm oil will be up on increasing supply worries after the Malaysian Metrological Department hinted on returning of el-nino. Weather outlook report released by Malaysia Meteorological Department showed increasing odds for El-Nino toward second half of this year, with a 50-55% chance of it developing from about July-Dec. Further, prices will also be up after Malaysia palm oil exports during Mar 1-31 rose by around 7% compared to a month earlier on strong demand from European Union and India & Subcontinents. Malaysia palm oil exports jumped to 1.07 million tons during Mar 1-31 compared to one million tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. India's palm oil imports from Malaysia during Mar 1-31 climbed by 36.60% to 248,425 tons as compared to 181,860 tons imported during Feb 1-28. World palm oil output is forecast to climb 11% to 65 million tonnes this year from 58.3 mln tonnes a year ago as near-perfect weather boosts yields, a senior industry official said. Refiners in Malaysia are disgruntled that they were not getting competitively-priced CPO due to the mismatch in duty structure between Malaysia and Indonesia. Technically market is under fresh buying as market has witnessed gain in open interest by 2.55% to settled at 7026 while prices up 2.2 rupees, now CPO is getting support at 516.6 and below same could see a test of 513.4 level, And resistance is now likely to be seen at 521.9, a move above could see prices testing 524.

Trading Ideas:

# CPO trading range for the day is 513.4-524.

# Crude palm oil gained on increasing demand and speculation of lower supply from top producers.

# Malaysia palm oil exports jumped to 1.07 million tons during Mar 1-31 compared to one million tons for the same period a month ago

# India's palm oil imports from Malaysia during Mar 1-31 climbed by 36.60% to 248,425 tons as compared to 181,860 tons imported during Feb 1-28.

Crude palm oil prices in spot market dropped by 2.40 rupees and settled at 536.90 rupees.