Crude Palm oil yesterday traded with the negative node and settled -0.54% down at 568.3 as traders booked profits tracking weakness in spot demand. Cargo surveyor Intertek Testing Services reported a 21 percent decline in Malaysian exports for the first 15 days of the month. Another cargo surveyor, Societe Generale de Surveillance, reported a 26.1 percent drop in exports for the same period compared to last month. Exports to China suffered the steepest decline, although demand is still expected to pick up due to various festivals, starting with the Muslim fasting month of Ramadan this week and with China and India celebrating key holidays from September to November. Total vegetable oil imports in June were 783,315 tonnes, down 12.7 percent from 896,921 tonnes in the previous month, the data from the Solvent Extractors' Association (SEA) showed. Malaysia's June Crude Palm Oil output increased by 6.3% from May to 1.47 million metric tonnes. Palm oil stockpiles at end-June fell to a 14-month low of 1.70 million tons, owing to weaker oil palm fruit yields. Palm oil stockpiles could fall further in July, to 1.65 million tons as exports are expected to stay ahead of production. In yesterday's trading session Crude Palm oil has touched the low of 561 after opening at 569.2, and finally settled at 568.3. For today's session market is looking to take support at 562.5, a break below could see a test of 556.7 and where as resistance is now likely to be seen at 572.6, a move above could see prices testing 576.9.
CPO trading range for the day is 556.7-576.9.
Crude Palm oil dropped as traders booked profits tracking weakness in spot demand.
Cargo surveyor Intertek Testing Services reported a 21% decline in Malaysian exports for the first 15 days
Exports to China suffered steepest decline, although demand is still expected to pick up due to various festivals
Crude palm oil prices in spot market dropped by 3.30 rupees and settled at 566.60 rupees.