CPO settled up 0.84% at 550.8 driven by upsurge in demand in the spot market against limited supplies from the major producing belts. A slight recovery in exports in the first 10 days of February also raised hopes of improving food and fuel demand for palm, although traders said export volumes will have to pick up faster to have any bigger impact on prices. Cargo surveyor Intertek Testing Services showed that Malaysia's Feb. 1-10 exports rose 4.1 percent to 309,455 tonnes from 297,308 shipped in the same period in January. 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 -18.52% to settled at 1866 while prices up 4.6 rupee, now CPO is getting support at 548.1 and below same could see a test of 545.4 level, And resistance is now likely to be seen at 552.4, a move above could see prices testing 554.

Trading Ideas:

CPO trading range for the day is 545.2-553.8.

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

A slight recovery in exports in the first 10 days of February also raised hopes of improving food and fuel demand for palm

Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek showed.

Crude palm oil prices in spot market gained by 2.00 and settled at 548.90 rupees.