08/07/2013 (Myiris.com) - CPO futures at MCX ended higher tracking expectations of lower palm oil production and inventories for June month. BMD Market was buoyed on Friday by expectations that stocks will ease and exports will rise during the July 1-10 period. Talks of increase in import duty from present 7.5% to 20% have supported the strength in palm oil prices. Higher 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.

Commenting on the outlook, broking firm Emkay Commodity Research, said, ''CPO is expected to trade in range with firm bias on expected fall in rupee value and strong festive demand. However, the extent of upside may be limited on importing countries growth concerns. MCX CPO July contract is likely to extend its four day gains towards 516 followed by 520 levels. Any corrective declines can't be ruled out towards 510 levels. We recommend buying July contract at Rs 510 with target at Rs 516 and stop loss at Rs 507.''

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