CPO Trading Range For The Day Is 568.97-580.97

CPO trading range for the day is 568.97-580.97. The market is looking to take support at 571.5, a break below could see a test of 569 and resistance is likely to be seen at 577.5, a move above could see prices testing 581.

Crude palm oil yesterday traded with the negative node and settled -0.13% down at 574 as speculators booked profits amid subdued spot demand. Weakening trend in overseas markets also put pressure on the prices. In yesterday's trading session crude palm oil has touched the low of 572.5 after opening at 575.3, and finally settled at 574. Palm oil is unlikely to stay above the psychologically level of MYR3,000/ton as external headwinds continue to supersede supportive demand fundamentals.

MCX CPO traded on a bullish note and settled higher on Tuesday. Demand is seen improving further for edible oil in the domestic as well as international markets ahead of Muslim festival. Indonesia, the world's top palm oil producer and exporter, will cut its export tax for CPO to 15% in July from 19.5% for June and for RBD Palm olein to 7 percent in July, from 10 percent this month, a trade ministry official said on Monday.

Malaysian palm oil exports grew 4.4% to 1.2 million tonnes in the first 25 days of the month from a month ago, said cargo surveyor, backed by higher shipment to China, India and Pakistan.

Hot and dry weather in the U.S. continued to threaten to damage soybean crops and could possibly lead to a smaller supply of soybean oil, raising appeal of palm oil that is already trading at a steep discount. Although the condition is uncertain, the local market is expected to be range-bound, supported by speculative play, demand is expected to pick up as traders stock up ahead of the fasting month, adding that the lower stock position, will help push prices up.