10/07/2013 (Moneycontrol.com) - CPO futures at MCX ended higher tracking record fall down in rupee however, BMD market closed down on expectations of better output in next month.

Second stage of higher production cycle starts from this month so market expects better output in coming months. However, increased physical demand ahead of festivals is likely to strengthen the demand for Palm oil in near to short term. Industry regulator Malaysian Palm Oil Board will release June stocks and production report on Wednesday.

CPO is expected to trade in range with weak bias on expected fall in rupee value and better output for coming months. However, downside extent may be limited on support of festive buying.

Technical:

MCX CPO July contract is likely to continue its corrective declines towards Rs 510 followed by Rs 506 levels.
Any gains can be limited towards Rs 515 levels.
Contract - July
Strategy - Sell
Entry - Around Rs 515
Target - Rs 506
Stop loss - Rs 518

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