CPO settled up 0.39% at 546.2 driven by upsurge in demand in the spot market against limited supplies from the major producing belts. Firming trends in the global markets on speculation that dry weather in South America may cut soybean production, potentially trimming global cooking oil supplies too supported crude palm oil prices. Market players will also be watching for official data on January palm oil end-stocks, output volumes and exports in the No. 2 producer that will be released by industry regulator the Malaysian Palm Oil Board on Feb. 10. A survey showed that palm oil output last month likely fell 8.8 percent from December as trees enter a seasonally slower production cycle. End-stocks were seen at 1.98 million tonnes, their first drop since June. Smaller soybean supplies for crushing would boost soyoil prices and potentially shift demand to rival palm oil, a common substitute. Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek showed. India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier, data release from the SEA of India. Technically market is under short covering as market has witnessed drop in open interest by -2.72% to settled at 2290 while prices up 2.1 rupee, now CPO is getting support at 544.1 and below same could see a test of 542.1 level, And resistance is now likely to be seen at 547.3, a move above could see prices testing 548.5.

Trading Ideas:

CPO trading range for the day is 542.1-548.5.

CPO gained driven by upsurge in demand in the spot market against limited supplies from the major producing belts

Market players will also be watching for official data on January palm oil end-stocks, output volumes and exports in the No. 2 producer.

Technically market is under short covering as market has witnessed drop in open interest by -2.72% to settled at 2290

Crude palm oil prices in spot market gained by 2.30 and settled at 546.90 rupees.