Crude palm Oil on MCX settled up by 0.55% at 516.4 tracking firmness in spot demand and overseas prices. Malaysia palm oil exports during Oct 1-25 dropped 10.89% compared to a month earlier on subdued demand from China, India and Middle East, data showed. Malaysia palm oil exports slipped to 990,939 tons during Oct 1-25 compared to 1.11 million tons for the same period a month ago, Dow Jones reported citing data from Intertek, a private surveyor. India's palm oil imports from Malaysia during Oct 1-25 slipped 17.04% to 247,924 tons compared to 298,850 tons during Sep 1-25. Palm oil stocks have risen by 9.6 per cent month on month (m-o-m) in October, but production last month is still trailing behind last year’s level. Malaysian palm oil production is expected to drop by between five per cent and eight per cent this year due to the prolonged El Nino drought. Palm oil production in Malaysia, the second largest palm oil producer, has eased by 1.0 million tonnes to 1.5 million tonnes in the first half of this year due to the lingering effects of the El-Nino weather pattern. In 2015, Malaysian palm oil production stood at 19.96 million tonnes. Production in Indonesia had reduced substantially in the first half of the year, and output for the full year would be below last year’s level. Technically market is under fresh buying as market has witnessed gain in open interest by 2.8% to settled at 5212 while prices up 2.8 rupee, now CPO is getting support at 511.1 and below same could see a test of 505.8 level, And resistance is now likely to be seen at 519.8, a move above could see prices testing 523.2.

Trading Ideas:

CPO trading range for the day is 505.8-523.2.

Crude palm oil prices ended with gains tracking firmness in spot demand and overseas prices.

Palm oil stocks have risen by 9.6 per cent month on month (m-o-m) in October, but production last month is still trailing behind last year’s level.

Malaysian palm oil production is expected to drop by between five per cent and eight per cent this year due to the prolonged El Nino drought.

Crude palm oil prices in spot market dropped by 11.80 rupees and settled at 523.00 rupees.