CPO settled flat as prices recovered from lows on short covering after falling due to a weak trend in global markets. Besides, ample inventories following higher supplies from the major producing belts too added pressure on crude palm oil prices.  Another reason for palm oil’s fall were over-pessimistic forecasts about a spell of dry weather early this year hurting output in Indonesia and Malaysia, who account for 85% of global palm oil output. India's palm oil imports rose 22 percent to 654,255 tonnes in May from a month ago, data from the Solvent Extractors' Association of India showed, as buyers stocked up ahead of the Muslim holy month of Ramadan when demand typically peaks. Palm oil imports by the world's top vegetable oil buyer are expected to stay firm in the next few months due to a drop in domestic cooking oil supplies and year-end festival demand. India's monthly palm oil imports could average 650,000 tonnes until October. A delay in the onset of the annual monsoon rains this year has stoked worries about the output of soybean, India's main summer oilseed crop.Malaysia, the world's second-largest palm grower, has lowered its crude palm oil export tax for July to 5 percent, a government circular showed, the first cut after three months. Exports of Malaysian palm oil products for June 1-15 fell 7.8 percent to 589,748 tonnes from 639,414 tonnes during May 1-15, cargo surveyor Intertek Testing Services said. Technically market is under short covering as market has witnessed drop in open interest by -2.81% to settled at 795 while prices up 0.1 rupee, now CPO is getting support at 525.1 and below same could see a test of 521.2 level, And resistance is now likely to be seen at 531.8, a move above could see prices testing 534.6.

Trading Ideas:

CPO trading range for the day is 521.2-534.6.

CPO settled flat as prices recovered from lows on short covering after falling due to a weak trend in global markets.

Another reason for palm oil’s fall were over-pessimistic forecasts about a spell of dry weather early this year hurting output.

Besides, ample inventories following higher supplies from the major producing belts too added pressure on prices.

Crude palm oil prices in spot market gained by 0.20 and settled at 529.50 rupees.