CPO yesterday settled down -0.74% at 539.5 on profit booking tracking weakness in spot demand but downside was limited after poor as a surprise surge in China's manufacturing sector fuelled demand hopes from the world's No. 2 palm oil buyer. Indonesia, the world's top palm oil producer, has cut its export tax for crude palm oil to 9 percent for September down from 10.5 percent in August, an industry ministry official said. The country's July exports of crude palm oil and its derivatives fell 164 percent to 1.59 million tonnes compared with the previous month, an industry body said on Wednesday, due to falling demand from India and China. Exports of Malaysian palm oil products from July 1 to 25 fell 7 percent to 1,085,392 tons when compared to 1,167,266 tons shipped during June 1 to 25 period, as per industry sources. Indonesia has set export tax for palm oil at 10.5% for August, unchanged from July's 10.5%.India's refined palm oil imports declined 20.7 percent in June to 296, 230 tons from a record high of 373,837 tons in May. Last week, crude palm oil and palm oil prices recorded a weak trend in the global market on speculation that the upcoming palm oil production season may cause to build large palm oil inventories in Malaysia, the world's second largest palm oil producer after Indonesia. World palm oil production may increase 4.4 percent to a 58.2 mn tons when compared to the previous season amid higher than expected palm oil production from Indonesia and Malaysia, the Oil World said on July 16. Now CPO is getting support at 534.7 and below same could see a test of 529.8 level, And resistance is now likely to be seen at 548.2, a move above could see prices testing 556.8.

Trading Ideas:

CPO trading range for the day is 529.9-556.9.

Crude palm oil ended with losses on profit booking tracking weakness in spot demand

The country's July exports of crude palm oil and its derivatives fell 164 percent to 1.59 million tonnes

World palm oil production may increase 4.4 percent to a 58.2 mn tons when compared to the previous season

Crude palm oil prices in spot market gained by Rs 8.00 and settled at 551.00 rupees.