CPO yesterday settled down -0.32% at 499.7 tracking weakness in spot demand and overseas prices on a weaker dollar and tepid soy markets, but a sharper-than-expected drop in inventory curbed losses. Palm oil stocks in Malaysia, hit a more than 2-year low of 1.61 million tonnes in June as demand continued to outstrip supply, although an uptick in production signalled the start of a higher yield cycle. Traders were also wary ahead of export data for the first 15 days of July due next Monday, although some say the figures will improve slightly. Palm oil exports in July 1-10 plunged 16 percent, surprising investors who had expected demand to be supported by last minute buying for the Muslim festival of Ramadan. Exports of Malaysian palm oil products for July 1-10 fell 15.9 percent to 352,375 tonnes from 419,035 tonnes during June 1-10, cargo surveyor Intertek Testing Services said. China, the world's second-largest palm oil buyer after India, imported 490,000 tonnes of vegetable oils that also included soyoil and rapeseed oil in June, down 31 percent from the previous month, customs data showed. Malaysia's palm oil stocks likely dropped to their lowest in a year as demand for the edible oil continued to outstrip supply. Inventory levels may have eased 4.2 percent from a month ago to 1.74 million tonnes in June, which would be the sixth straight monthly decline. Production, however, still fell short of the 1.59 million tonnes of total demand represented by exports and local consumption. Now CPO is getting support at 498.4 and below same could see a test of 497.2 level, And resistance is now likely to be seen at 501.2, a move above could see prices testing 502.8.

Trading Ideas:

CPO trading range for the day is 497.2-502.8.

Crude palm oil ended with losses tracking weakness in spot demand and overseas prices on a weaker dollar and tepid soy markets.

Palm oil stocks in Malaysia, hit a more than 2-year low of 1.61 million tonnes in June.

Traders were also wary ahead of export data for the first 15 days of July due on Monday

Crude palm oil prices in spot market dropped by Rs 1.30 and settled at 502.80 rupees.