Crude Palm Oil yesterday traded with the positive node and settled 0.55% up at 438.2 as local demand for the beginning of new year could support sentiments in physical markets. Besides weak foreign support, slack demand in physical market on account of higher prices also added to the bearish sentiment. Notwithstanding decline in arrival, report of higher crop estimate in mustard and better position of soya seeds crop in Brazil has also lent support to bearish sentiment in soyabean. Exports rose slightly for the first 25 days of December from the same period a month ago, thanks to larger purchases from India and the United States, cargo surveyor data showed. On top of that, heavy rains that could bring floods to key oil palm producing regions in the Southeast Asian country sparked concerns of supply disruptions, raising hopes that inventory levels could fall in December. Malaysia's Dec. 1-25 palm oil exports rose 0.5% from the same period a month earlier to around 1.28 million tons, cargo surveyor Intertek Agri Services. However, the positive exports data was tempered by concerns over high palm-oil inventories and the world-wide economic outlook. In yesterday's trading session Crude Palm oil has touched the low of 435.1 after opening at 435.1, and finally settled at 438.2. For today's session market is looking to take support at 435.63, a break below could see a test of 433.07 and where as resistance is now likely to be seen at 440.23, a move above could see prices testing 442.27.

CPO

CPO trading range for the day is 433.07-442.27.

Crude Palm oil recovered as improved local demand for the beginning of new year

Malaysia's Dec. 1-25 palm oil exports rose 0.5% from the same period a month earlier to around 1.28 million tons

Positive exports data was tempered by concerns over high palm-oil inventories and the world-wide economic outlook.

Heavy rains that could bring floods to key oil palm producing regions sparked concerns of supply disruptions. December.

BUY CPO JAN @ 438.50 SL 434.50 TGT 440.50-442.80.MCX