CPO settled up 0.42% at 575.2 on rising demand in the spot markets. The sentiment improved further after supplies for the commodities were not enough to meet the demand. Larger than expected drop in crude palm oil production from the major producing belts too supported commodity prices uptrend. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during February 1-20 increased by 16.90% from the same period in January to 8.75 lakh metric tonne. A surge in exports in the first half of the month had lifted hopes of a recovery in demand from top consuming countries. Malaysian palm oil shipments between Feb. 1-15 rose 27-32 percent from a month earlier, due to bigger demand from China, Europe and Pakistan. 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 fresh buying as market has witnessed gain in open interest by 1.44% to settled at 1475 while prices up 2.4 rupee, now CPO is getting support at 572.8 and below same could see a test of 570.3 level, And resistance is now likely to be seen at 578.9, a move above could see prices testing 582.5.

Trading Ideas:

CPO trading range for the day is 570.8-583.

Crude palm oil ended higher on rising demand in the spot markets.

The sentiment improved further after supplies for the commodities were not enough to meet the demand.

Larger than expected drop in crude palm oil production from the major producing belts too supported commodity prices uptrend.

Crude palm oil prices in spot market gained by 4.80 and settled at 578.20 rupees.