Crude Palm Oil yesterday traded with the positive node and settled 1.16% up at 573.5 expected to be bullish this week amid a gloomy global economic scenario. Although the condition is uncertain, the local market is expected to be range-bound, supported by speculative play, demand is expected to pick up as traders stock up ahead of the fasting month, adding that the lower stock position, will help push prices up. For the week just-ended, futures prices were mixed as traders remained concerned over the uncertain global market situation. Palm oil is unlikely to stay above the psychologically level of MYR3,000/ton as external headwinds continue to supersede supportive demand fundamentals. Exports of palm oil from the world's second-largest producer will likely remain strong for the rest of June, as buyers stock up before the Muslim fasting month of Ramadan begins July 20. Demand typically rises in the Middle East, Pakistan and Bangladesh during this period, when Muslims break their fasts in the evening with feasts. A shipping executive in Kuala Lumpur tipped palm oil shipments to reach 1.46 million-1.50 million tons in June, on higher sales to China, India and Pakistan. Malaysian palm oil exports grew 15 percent in the first 20 days of the month from a month ago, said cargo surveyor Intertek Testing Services and Societe Generale de Surveillance, backed by last-minute buying from India and Pakistan ahead of the fasting month beginning in late July. In yesterday's trading session Crude Palm oil has touched the low of 571 after opening at 571, and finally settled at 573.5. For today's session market is looking to take support at 569.67, a break below could see a test of 565.83 and where as resistance is now likely to be seen at 578.67, a move above could see prices testing 583.83.
CPO trading range for the day is 565.83-583.83.
Crude Palm oil settled up at 573.5 expected to be bullish this week amid a gloomy global economic scenario.
Demand is expected to pick up ahead of the fasting month, which will help push prices up.
A shipping executive in Kuala Lumpur tipped palm oil shipments to reach 1.46 million-1.50mts in June.
Demand typically rises when Muslims break their fasts in the evening with feasts.
BUY CPO JUNE @ 572 SL 568 TGT 576.50-579.50-582.MCX