CPO settled up 0.53% at 534.6 on expectations of improved global demand for blending with diesel and limited supplies. Malaysia, world's second-biggest palm oil producer, crude palm oil output fell to 1.56 million tons in June compared to 1.65 million tons in May, the report showed. Exports from Malaysia gained 1.48 million tons in June compared to 1.4million in May, the report said. Palm oil inventories in Malaysia slumped 5.3% to 1.57 million tons in June compared to 1.84 million tons a month ago. 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, 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. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 1.68% to settled at 2667 while prices up 2.8 rupee, now CPO is getting support at 530.5 and below same could see a test of 526.3 level, And resistance is now likely to be seen at 537.4, a move above could see prices testing 540.1.

Trading Ideas:

CPO trading range for the day is 526.3-540.1.

Crude palm oil gained on expectations of improved global demand for blending with diesel and limited supplies.

Malaysia, crude palm oil output fell to 1.56 million tons in June compared to 1.65 million tons in May.

Exports from Malaysia gained 1.48 million tons in June compared to 1.4million in May, the report said.

Crude palm oil prices in spot market gained by 4.30 and settled at 538.40 rupees.