CPO settled up 0.79% at 511.1 amid restricted arrivals from the major producing belts in the physical market against improved domestic demand. However, weak sentiments of the international market, capped some gains in crude palm oil prices to some extent. 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. Exports of Malaysian palm oil products for July 1-15 rose 14.2 percent to 673,463 tonnes from 589,748 tonnes during June 1-15, cargo surveyor Intertek Testing Services said. 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. Technically market is under short covering as market has witnessed drop in open interest by -6.91% to settled at 5069 while prices up 4 rupee, now CPO is getting support at 507.8 and below same could see a test of 504.6 level, And resistance is now likely to be seen at 513.6, a move above could see prices testing 516.2.

Trading Ideas:

CPO trading range for the day is 504.6-516.2.

Crude palm oil gains amid restricted arrivals from the major producing belts in the physical market against improved domestic demand.

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.

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 dropped by 1.50 and settled at 521.80 rupees.