CPO settled up 0.23% at 519.4 tracking firmness in spot demand amid late shortcovering. However, restricted arrivals from producing regions and expectations of improved global demand also supported crude palm oil prices to some extent. India crude palm oil imports jumped 45% 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. Palm oil production in top growers Indonesia and Malaysia could pick up in the final months of this year, keeping a lid on prices, although some in the market are still worried about a potential El Nino plus tree stress in Malaysia. However, Malaysia, the second-biggest producer, churned out 9.1 million tonnes of crude palm oil between January and June, up from 8.4 million in the same period last year. The Malaysian Palm Oil Board, the industry regulator, sees output hitting a record 19.5 million tonnes this year versus 19.2 million in 2013. The outlook for crude palm oil output in Indonesia, the world's biggest grower, has turned round recently. The Agriculture Ministry said in mid-July that output in 2014 had initially been forecast to drop 15-20 percent due to the predicted El Nino, but now it was expected to reach 29.5 million tonnes, up 6.3 percent from 27.8 million in 2013. Technically market is under fresh buying as market has witnessed gain in open interest by 1.48% to settled at 3708 while prices up 1.2 rupee, now CPO is getting support at 517.3 and below same could see a test of 515.2 level, And resistance is now likely to be seen at 520.5, a move above could see prices testing 521.6.

Trading Ideas:

CPO trading range for the day is 515.2-521.6.

Crude palm oil ended with gains tracking firmness in spot demand amid late short covering.

India crude palm oil imports jumped 45% to 5.12 million tons in June compared to 3.53 million tons for the same period a year ago.

The Agriculture Ministry said in mid-July that output in 2014 had initially been forecast to drop 15-20 percent due to the predicted El Nino.

Crude palm oil prices in spot market dropped by 6.50 and settled at 529.70 rupees.