CPO settled up 0.54% at 573.4 following rising demand in the spot markets against lower arrivals from the major producing areas. The commodity improved further on firming trends in overseas prices and the global markets on speculation that demand may improve as dry weather hurt soybean crops in South America. Crude palm oil prices are expected to improve throughout the year due to declining palm oil production in Indonesia as a result of rainfall deficit over the past two years. A surge in exports in the first half of February also lifted hopes of a recovery in demand from top consuming countries. Cargo surveyors reported Malaysian shipments between Feb. 1-15 rose 27-32 percent from a month earlier, due to bigger demand from China, Europe and Pakistan. Market participants said the dry weather in Malaysia and Indonesia, where most of the world's oil palm is grown, could hinder production and tighten supplies of the edible oil which is used to make soaps to cookies and biofuel. 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. Technically market is under short covering as market has witnessed drop in open interest by -10.14% to settled at 1454 while prices up 3.1 rupee, now CPO is getting support at 571.5 and below same could see a test of 569.6 level, And resistance is now likely to be seen at 574.8, a move above could see prices testing 576.2.

Trading Ideas:

CPO trading range for the day is 569.4-576.

Crude palm oil ended with gains following rising demand in the spot markets against lower arrivals from the major producing areas.

Cargo surveyors will release data for Feb. 1-20 exports on Thursday.

Cargo surveyors reported Malaysian shipments between Feb. 1-15 rose 27-32 percent from a month earlier

Crude palm oil prices in spot market gained by 4.40 and settled at 573.40 rupees.