CPO settled up 0.36% at 533.9 on late short covering after prices dropped dragged by fears of abundant global oilseed supplies, and as estimates for an uptick in palm oil output this month turned investors wary. However, expectations of improved global demand for blending with diesel and limited supplies, capped some losses in crude palm oil prices. Indonesia is expected to export between 19 million and 20 million tonnes of palm oil in 2014, according to a leading industry association, a decline of up to 9.5 percent from the 21 million tonnes the world's top producer shipped in 2013. Exports in the first half of 2014 amounted to 9.75 million tonnes, down from around 11 million tonnes in the first half of 2013. In addition, India has increased import duties on Indonesian palm oil this year. Malaysia palm oil exports jumped to 868,843 tons in July 1-20 compared to 806,303 tons for the same period a month ago, data from Intertek a private surveyor showed. 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. Technically market is under short covering as market has witnessed drop in open interest by -6.72% to settled at 2498 while prices up 1.9 rupee, now CPO is getting support at 530.7 and below same could see a test of 527.6 level, And resistance is now likely to be seen at 535.8, a move above could see prices testing 537.8.

Trading Ideas:

CPO trading range for the day is 527.6-537.8.

CPO settled up on late short covering after prices dropped dragged by fears of abundant global oilseed supplies

However, expectations of improved global demand for blending with diesel and limited supplies, capped some losses in crude palm oil prices.

Indonesia is expected to export between 19 million and 20 million tonnes of palm oil in 2014.

Crude palm oil prices in spot market dropped by 2.10 and settled at 538.30 rupees.