CPO settled up 1.6% at 458.4 as support seen on lower levels amid short covering after prices dropped in recent sessions due to worries of plentiful supplies of rival edible oils alongside rising palm oil production. Palm entered a bear market last month as favorable weather boosted the outlook for U.S. soybean crops, estimated to be the largest ever. Prices also slumped as demand for biofuels missed expectations and forecasts for an El Nino weather, which can disrupt supplies, were scaled back. Production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year. Production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year. 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. Technically market is under short covering as market has witnessed drop in open interest by -8.78% to settled at 2318 while prices up 7.2 rupee, now CPO is getting support at 445.7 and below same could see a test of 432.9 level, And resistance is now likely to be seen at 465.3, a move above could see prices testing 472.1.

Trading Ideas:

CPO trading range for the day is 432.9-472.1.

CPO gained as support seen on lower levels amid short covering after prices dropped in recent sessions

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

Palm entered a bear market last month as favorable weather boosted the outlook for U.S. soybean crops, estimated to be the largest ever.

Crude palm oil prices in spot market gained by 1.90 and settled at 484.60 rupees.