CPO settled up 0.56% at 484.5 on short covering after prices dropped amidst subdued demand in spot market against adequate stocks position. Further, forecasts of abundant supply of competing oilseeds alongside an expected surge in Southeast Asian palm output too limited the upside. India’s Palm oil imports are cut 200,000 tons to 8.6 million on weaker than expected purchases. Palm also slumped as demand for biofuels missed expectations, forecasts for an El Nino weather pattern, which can disrupt supplies, were scaled back, and the ringgit strengthened. Global ending stockpiles of palm oil will increase 10 percent to 8.7 million tons in 2014-2015, according to a forecast from the USDA.  Malaysian palm oil exports fell 15.2% to 570,761 tons during Aug 1-15 compared to 673,463 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed. India's palm oil imports rose by a tenth to 657,750 tonnes in July from a month earlier, data from a leading trade body showed, as buyers boosted shipments to meet a big gap in local supplies amid poor monsoon rains. Palm oil imports by the world's top vegetable oil buyer are expected to stay firm in the next couple of months due to a drop in local cooking oil supplies on expectation of a lower harvest of summer sown oilseed crops including soybean. Technically market is under short covering as market has witnessed drop in open interest by -1.23% to settled at 3616 while prices up 2.7 rupee, now CPO is getting support at 476.7 and below same could see a test of 468.9 level, And resistance is now likely to be seen at 492.1, a move above could see prices testing 499.7.

Trading Ideas:

CPO trading range for the day is 468.9-499.7.

Crude palm oil ended with gains on short covering after prices dropped amidst subdued demand in spot market against adequate stocks position.

Further, forecasts of abundant supply of competing oilseeds alongside an expected surge in Southeast Asian palm output too limited the upside.

India’s Palm oil imports are cut 200,000 tons to 8.6 million on weaker than expected purchases.

Crude palm oil prices in spot market dropped by 7.40 and settled at 486.80 rupees.