Crude palm Oil on MCX settled up by 0.95% at 597.1 supported by pick-up in demand at the spot market amid firming trend in the global market. Further, restricted supplies from the producing belts also supported the uptrend in the crude palm oil prices. Prices also seen supported on anticipation of increase in physical demand for the oil after lower demand during last two months due to affect on demonetization. As per SEA data, India Nov-Dec RBD palmolein import 486,502 tonnes, up 5% on year and Dec RBD palmolein import 245,554 tonnes vs 231,810 tonnes year ago. India & Subcontinent's palm oil imports from Malaysia during first 25 days of the month climbed by 60.26% to 144,175 tons as compared to 89,960 tons in Nov 1-25. Malaysia and Indonesia raised export tax and weak demand. Indonesia raises export tax to $3 per tons in January 2017 as per the trade ministry. Data published by DowJones citing Intertek, a private surveyor Malaysia's palm oil exports during 1-25 dropped by 5.60% compared to same period a month ago on subdued demand from Middle East. Malaysia palm oil exports slipped to 845,441 tons during Dec 1-25 compared to 895,625 tons for the same period a month ago. CPO production in the South-East Asian nation likely eased to 3.22 million tonnes in December from 3.31 million tonnes in November, according to the median estimate in a survey of three industry associations and a state palm research firm. Technically market is under short covering as market has witnessed drop in open interest by -9.59% to settled at 3112 while prices up 5.6 rupee, now CPO is getting support at 594.3 and below same could see a test of 591.4 level, And resistance is now likely to be seen at 599.9, a move above could see prices testing 602.6.

Trading Ideas:

# CPO trading range for the day is 591.4-602.6.

# Crude palm oil gained supported by pick-up in demand at the spot market amid firming trend in the global market.

# Prices also seen supported on anticipation of increase in physical demand for the oil after lower demand during last two months.

# As per SEA data, India Nov-Dec RBD palmolein import 486,502 tonnes, up 5% on year and Dec RBD palmolein import 245,554 tonnes.

Crude palm oil prices in spot market gained by 3.40 rupees and settled at 598.00 rupees.