CPO settled up 0.84% at 564.5 due to strong demand in the spot markets against limited supplies from the major producing regions. Further, firming trends in the global markets too supported crude palm oil prices uptrend. Malaysia, the world's No.2 palm oil producer, has kept its crude palm oil export tax for March at 5 percent, a government circular showed. Exports of Malaysian palm oil products from Feb. 1 to 15 rose 31.7 percent to 606,190 tonnes from 460,248 tonnes shipped during Jan. 1 to 15, cargo surveyor Intertek Testing Services said. Palm oil prices were supported in hope that global demand may shift to crude palm oil from soybean oil after reports of Brazil draught condition triggered supply concerns. Malaysia palm oil production plunged 9.6% on month in January while inventories dropped 2.6% on month, Malaysian Palm Oil Board (MPOB) data showed. Malaysia, world's second-biggest palm oil producer, crude palm oil output in slumped to 1.5 million tons in January compared to 1.66 million tons in December, the report showed. Palm oil inventories dropped to 1.93 million tons in January compared to 1.98 million tons a month ago. Technically market is under short covering as market has witnessed drop in open interest by -1.18% to settled at 1680 while prices up 4.7 rupee, now CPO is getting support at 560.6 and below same could see a test of 556.8 level, And resistance is now likely to be seen at 566.7, a move above could see prices testing 569.

Trading Ideas:

CPO trading range for the day is 556.8-569.

Crude palm oil ended with gains due to strong demand in the spot markets against limited supplies from the major producing regions.

Malaysia has kept its crude palm oil export tax for March at 5 percent, a government circular showed

Exports of Malaysian palm oil products from Feb. 1 to 15 rose 31.7 percent to 606,190 tonnes from 460,248 tonnes shipped during Jan. 1 to 15

Crude palm oil prices in spot market gained by 3.00 and settled at 563.30 rupees.