Crude Palm oil yesterday traded with the positive node and settled 1.12% up at 575.5 on worries that unfavourable weather from the United States to India could crimp oilseed production and tighten global cooking oil supply during an Asian peak demand season. A shortfall in India's monsoon rains is the latest weather concern to hit edible oil markets as summer-sown crops such as soybeans will be affected, forcing the world's largest edible oil importer to buy more alternative palm oil. Palm oil, which has lost 0.5 percent so far this year, is also now rising due to the drought in the United States, which is hurting soybean yields. Traders are expecting a slew of Malaysian export data for the first ten days of July on Tuesday to show strong festival demand for the edible oil. The Asian festival season starts with the Muslim observance of Ramadan, which begins around July 20, where a month of fasting in the day is followed by feasts in the evening. In yesterday's trading session Crude Palm oil has touched the low of 572 after opening at 572, and finally settled at 575.5. For today's session market is looking to take support at 572.4, a break below could see a test of 569.4 and where as resistance is now likely to be seen at 578.1, a move above could see prices testing 580.8.
CPO trading range for the day is 569.37-580.77.
Crude palm oil rose on worries that unfavourable weather from US to India could crimp oilseed production
Weather woes come as Asian festival season starts in July
A shortfall in India's monsoon rains is the latest weather concern to hit edible oil markets
Crude palm oil prices in spot market gained by 7.80 rupees and settled at 574.20 rupees.
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