CPO settled up 0.58% at 537 following rising demand in the spot market. Further, expectations of improved global demand for blending with diesel and limited supplies too supported crude palm oil prices uptrend. 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. 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. Palm oil imports by India, the world's biggest buyer, declined for a second month in June as refiners bought more sunflower oil after prices retreated on rising global cooking oil supplies. India imports more than 50 percent of its demand, shipping palm oil from Indonesia and Malaysia. Shipments of the main crude and refined palm oils fell 3.8 percent to 625,000 metric tons in June from a year earlier. Technically market is under short covering as market has witnessed drop in open interest by -6.97% to settled at 2324 while prices up 3.1 rupee, now CPO is getting support at 535 and below same could see a test of 532.9 level, And resistance is now likely to be seen at 538.7, a move above could see prices testing 540.3.

Trading Ideas:

CPO trading range for the day is 532.9-540.3.

Crude palm oil gained following rising demand in the spot market.

Further, expectations of improved global demand for blending with diesel and limited supplies too supported prices.

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.

Crude palm oil prices in spot market gained by 1.00 and settled at 539.30 rupees.