Crude palm Oil settled down by -0.59% at 402.4 on late profit booking after prices seen supported amid expectations seasonally lower supply may be tighter due to the El Nino dry weather pattern. Top producer Indonesia this week cut its crude palm oil output estimate for next year to 33 million tonnes from an earlier projected 33.5 million tonnes, citing El Nino which could strengthen until December. Export demand for Malaysian palm oil tends to soften in November and December during winter in major consuming countries such as China. Malaysia palm oil exports during October 1-20 slipped 12.9% compared to a month earlier on improved demand from China and Middle East. Malaysia palm oil exports jumped to 929,837 tons compared to 1.06 million tons for the same period a month ago, data from Intertek Testing Services, cargo surveyor, showed. Malaysia's crude palm oil output fell in September a data released by the Malaysian Palm Oil Board showed. Palm oil output dropped 4.45% to 1.96 million tons in September end compared to 2.05 million tons a month earlier. According to latest data released by SEA, India's palm oil imports rose by 12.20 per cent to 7,83,734 tonnes in September as against the year-ago period, on account of lower global prices. Palm oil makes up 70 per cent of the country's total vegetable oil imports. India meets 60 per cent of its annual vegetable oil demand of 17-18 million tonnes via imports. Technically market is under long liquidation as market has witnessed drop in open interest by -10.43% to settled at 1220 while prices down -2.4 rupee, now CPO is getting support at 400.6 and below same could see a test of 398.8 level, And resistance is now likely to be seen at 405.8, a move above could see prices testing 409.2.

Trading Ideas:

CPO trading range for the day is 398.8-409.2.

Crude palm oil dropped on late profit booking after prices seen supported amid expectations seasonally lower supply may be tighter .

Indonesia cut its crude palm oil output estimate for next year to 33 million tonnes from an earlier projected 33.5 million tonnes.

Export demand for Malaysian palm oil tends to soften in November and December during winter in major consuming countries such as China.

Crude palm oil prices in spot market gained by 1.30 rupees and settled at 404.70 rupees.