Crude palm Oil settled up by 0.98% at 424 on supply concern after Malaysia CPO output fell in November. Prices of the CPO were also supported taking cues from international market on supply concern and higher demand. Malaysia palm oil output fell 7.5% to 1.75 million tons as on November end compared to 1.89 million tons a month earlier, Dow Jones reported citing data from Intertek a private surveyor showed. Prices of the CPO were also up after Malaysia palm oil export in Dec 1-10 rose on improved demand from China, European Union and Middle East. Malaysia palm oil exports rose 1.70% to 407,425 tons in Dec 1-10 compared to 400,614 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed. Palm oil exports from Malaysia, which waived a levy on shipments for the final four months of 2014, will probably remain duty-free in January as average prices stay below a threshold for a tax to be imposed. Malaysia removed the duty for September and October and extended the waiver for two months to try to curb the buildup of reserves and support prices of its most valuable farm-commodity export. Crude palm oil prices in spot market dropped by 1.20 and settled at 417.20 rupees. Technically market is under short covering as market has witnessed drop in open interest by -12.5% to settled at 2652 while prices up 4.1 rupee, now CPO is getting support at 419.4 and below same could see a test of 414.7 level, And resistance is now likely to be seen at 426.8, a move above could see prices testing 429.5.

Trading Ideas:

CPO trading range for the day is 414.7-429.5.

Crude palm oil prices seen supported on supply concern after Malaysia CPO output fell in November.

Prices of the CPO were also supported taking cues from international market on supply concern and higher demand.

Malaysia palm oil output fell 7.5% to 1.75 million tons as on November end compared to 1.89 million tons a month earlier

Crude palm oil prices in spot market dropped by 1.20 and settled at 417.20 rupees.