Crude palm oil edged higher tracking firmness in spot demand amid restricted arrivals from the major producing belts. However upside seen limited on pressure from higher-than-expected stockpiles and prospects of rising global edible oil production. Malaysian palm oil stocks rose 1.5 percent to 1,681,016 tonnes against a revised 1,656,700 tonnes at the end of June due to lower exports and higher palm oil production. Malaysian's palm oil production exports in July stood at 1.66 million tons, 6.4% higher from the previous month but on y-o-y basis about 0.59 percent lower palm oil production noted during June. On the export front, palm oil export fell by 2.70 percent to 1.44 million tons on m-o-m basis. Report was slightly bearish for palm oil as market participants were expecting 1.64 MMT of palm oil inventories as of June. 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 Technically market is under fresh buying as market has witnessed gain in open interest by 0.91% to settled at 5445 while prices up 0.4 rupee, now CPO is getting support at 505.2 and below same could see a test of 503.4 level, And resistance is now likely to be seen at 508.8, a move above could see prices testing 510.6.

Trading Ideas:

CPO trading range for the day is 503.4-510.6.

Crude palm oil edged higher tracking firmness in spot demand amid restricted arrivals from the major producing belts.

However upside seen limited on pressure from higher-than-expected stockpiles and prospects of rising global edible oil production.

Malaysian's palm oil production exports in July stood at 1.66 million tons, 6.4% higher from the previous month.

Crude palm oil prices in spot market gained by 0.10 and settled at 523.30 rupees.