CPO Trading Range For The Day Is 569.37-580.77

CPO trading range for the day is 569.37-580.77. Market is looking to take support at 572.4, a break below could see a test of 569.4 and resistance is likely to be seen at 578.1, a move above could see prices testing 580.8. In yesterday's trading session crude palm oil has touched the low of 572 after opening at 572, and finally settled at 575.5.

Crude palm oil yesterday traded with the positive node and settled 1.12% up at 575.5 on worries that unfavourable weather from the United States to India could crimp oilseed production and tighten global cooking oil supply during an Asian peak demand season.

Traders are expecting a slew of Malaysian export data for the first ten days of July on Tuesday to show strong festival demand for the Edible oil. The Asian festival season starts with the Muslim observance of Ramadan, which begins around July 20, where a month of fasting in the day is followed by feasts in the evening.

MCX CPO settled higher by 1.48% and 1.12% on w-o-w tracking the oilseed complex. In addition, demand continues to remain strong for edible oil in the domestic as well as international markets ahead of the 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 Palmolein to 7 percent in July, from 10 percent this month, a trade ministry official said on Monday.

BMD CPO futures rose on Monday on worries that unfavorable weather at US could cripple oilseed production and tighten global supply of cooking oil during the peak Asian demand period. A shortfall in India's monsoon rains is the latest weather concern to hit edible oil markets as summer-sown crops will be affected, forcing the world's largest importer of edible oil to buy more alternative palm oil. Sep ’12 CPO futures ended up 0.7% or MYR23.