Crude palm Oil settled down by -0.69% at 389.8 on oversupply of the oil from Malaysia, the second biggest palm oil producer. Malaysia's crude palm oil output rose in July and end- July stockpiles climbed, a data released by the Malaysian Palm Oil Board showed. Palm oil output jumped 2.84% to 1.81 million tons as on July end compared to 1.76 million tons a month earlier. Palm oil stockpiles also rose 5.11% to 2.26 million tons as on July end compared to 2.15 million tons a month ago, data showed. Malaysia's palm-oil exports slipped 5.32% to 1.60 million tons in July from the previous month. Crude palm oil imports climbed to 765,865 tons in July, its highest in two-month, compared to 527,648 tons in the same period a month ago, data release from the Solvent Extractors Association (SEA) of India showed. According to latest SEA data release, soy oil imports down, 46 per cent m- o-m to 1.54 lt compared to 2.89 lt. India's vegetable oil imports during Jun at 10 lh compared to 8.83 lh in June 2015. Meanwhile, during November-June period, vegetable oils imports increased by 25% to 88.49 lt compared with 71 lh tonnes in the year-ago period. Technically market is under long liquidation as market has witnessed drop in open interest by -19.02% to settled at 4063 while prices down -2.7 rupee, now CPO is getting support at 388.5 and below same could see a test of 387.3 level, And resistance is now likely to be seen at 391.7, a move above could see prices testing 393.7.

Trading Ideas:

CPO trading range for the day is 387.3-393.7.

Crude palm oil prices dropped on oversupply of the oil from Malaysia, the second biggest palm oil producer.

Malaysia's crude palm oil output rose in July and end-July stockpiles climbed, a data released by the Malaysian Palm Oil Board showed.

Palm oil output jumped 2.84% to 1.81 million tons as on July end compared to 1.76 million tons a month earlier.

Crude palm oil prices in spot market dropped by 0.60 rupees and settled at 390.00 rupees.