CPO settled up 0.95% at 531.8 due to improved demand in the spot market. Further, firm export demand and prospects of tighter supplies of the vegetable oil this month, too supported crude palm oil prices uptrend. India crude palm oil imports jumped to 5.12 million tons in June compared to 3.53 million tons for the same period a year ago, data release from the Solvent Extractors Association (SEA) of India showed. Malaysia, the world's second-largest palm grower, has kept its crude palm oil export tax for August at 5 percent, a government circular showed on Friday, the same as a month ago.

The rate was lowered to 5.0 percent in July after being kept unchanged at 5.5 percent since April. Exports of Malaysian palm oil products for July 1-15 rose 14.2 percent to 673,463 tonnes from 589,748 tonnes during June 1-15, cargo surveyor Intertek Testing Services said. Imports of palm oil by India, the world’s largest buyer, probably dropped for a second month as a shrinking discount to soybean and sunflower oils cut its appeal. Shipments of the main crude and refined palm oils fell 3.8 percent to 625,000 metric tons in June from a year earlier.

However, the gains were capped as the USDA forecasted huge global supplies ahead for soyabean in the monthly report issued. India's vegetable oil imports fell 6.7 percent in June from a year earlier as buyers held off from purchases in the hope that prices would drop further. Technically market is under short covering as market has witnessed drop in open interest by -7.15% to settled at 2623, now CPO is getting support at 527.6 and below same could see a test of 523.3 level, And resistance is now likely to be seen at 534.1, a move above could see prices testing 536.3.

Trading Ideas:

CPO trading range for the day is 523.3-536.3.

Crude palm oil gained due to improved demand in the spot market.

Further, firm export demand and prospects of tighter supplies of the vegetable oil this month, too supported crude palm oil prices.

India crude palm oil imports jumped to 5.12 million tons in June compared to 3.53 million tons for the same period a year ago.

Crude palm oil prices in spot market dropped by 0.10 and settled at 534.10 rupees.