Crude Palm Oil yesterday traded with the positive node and settled 0.73% up at 562.1 tracking firm spot demand amid firm overseas market on strong exports last month. Palm oil exports posted an 18 percent gain in August from a month ago to the highest level this year, cargo surveyor Intertek Testing Services said on Friday, in part boosted by the edible oil's huge discount to competing soyoil. Exports surged to 1.45 million tonnes in August, bolstered by higher shipments of crude products and a demand recovery from major food buyers China and India. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports in August spurted by 17.7% to 1.45 million tonne compared to the previous month of July 2012. Indonesia, the world's top palm oil producer, will cut its export tax for crude palm oil to 13.5 percent for September, down from 15 percent in August and keep its tax on cocoa beans at 5 percent for September. The government will also lower the export tax for RBD palm olein to 6 percent in September, versus 7 percent in August. It has cut CPO September base export prices to $918 vs current $959. In yesterday's trading session Crude Palm oil has touched the low of 559.3 after opening at 559.9, and finally settled at 562.1. For today's session market is looking to take support at 559.4, a break below could see a test of 556.8 and where as resistance is now likely to be seen at 564.6, a move above could see prices testing 567.2.

Trading Ideas:

CPO trading range for the day is 556.77-567.17.

Crude palm oil ended with gains tracking firm spot demand amid firm overseas market on strong exports last month.

Palm oil exports posted an 18 percent gain in August from a month ago to the highest level this year

Market sentiment remained positive on healthy export demand for palm oil

Crude palm oil prices in spot market gained by 4.70 rupees and settled at 556.50 rupees.