CPO trading range for the day is 567.03-574.23. Market is looking to take support at 568.8, a break below could see a test of 567 and resistance is likely to be seen at 572.4, a move above could see prices testing 574.2.
Crude Palm oil yesterday traded with the positive node and settled 0.93% up at 570.5 on short covering reflecting optimism on demand prospects for Palm oil. Palm oil demand remains healthy with Malaysian exports showing a steady improvement for the first 25 days of June compared to a month ago. On Saturday's trading session Crude Palm oil has touched the low of 568.9 after opening at 570.9, and finally settled at 570.5.
BMD CPO rose Friday, reflecting positive sentiment after European leaders agreed to measures aimed at stabilizing volatile markets. Sept’12 futures ended 0.7% higher at MYR 3,020/ton after moving in the range of MYR2,991-MYR3,030/ton. Expectations of a rise in Palm oil exports in June.
Palm oil has lost 14% in the April-June quarter, weighed by worries about slowing economic growth in China and Europe's debt crisis. However, near term supply concerns with weather anomalies across the producing and consuming nations are holding the prices firm.