Crude palm Oil on MCX settled down by -0.63% at 555.5 amid easing supply worries from Malaysia, the world's second biggest oil producer. Price will remain down after estimates from millers in southern Peninsular Malaysia showed yields rose by 14% between Feb 1-15. In addition this palm oil (CPO+RBD) stock in various ports of India has risen by 30% as on Feb 06 against last week. In addition this, on demand side, market participants are taking no interest in buying for the oil on weak sentiment, whereas big players in the industry also opted to stay away from market. Palm oil imports fell for the third consecutive month by 11.56 per cent to 608,762 tonnes in January, on account of good domestic oilseeds production and better availability of edible oils, industry body Solvent Extractors Association (SEA) said. India, the world’s leading vegetable oil buyer, had imported 688,393 tonnes palm oil in January 2015. The country’s total vegetable oil imports fell by 19 per cent to 1.24 million tonnes (mt) in January this year from 1.26 mt in the year-ago period. “Import has reduced due to good Kharif oilseeds crop and better domestic availability of edible oils and utilisation of stock. Currency crunch due to demonetisation has slowed down the purchases by end consumers also affected the demand and import to some extent,” SEA said in a statement. Technically market is under fresh selling as market has witnessed gain in open interest by 1.2% to settled at 3028 while prices down -3.5 rupees, now CPO is getting support at 552.3 and below same could see a test of 549.1 level, And resistance is now likely to be seen at 559.9, a move above could see prices testing 564.3.

Trading Ideas

# CPO trading range for the day is 549.1-564.3.

# Crude palm oil prices dropped amid easing supply worries from Malaysia, the world's second biggest oil producer.

# Price will remain down after estimates from millers in southern Peninsular Malaysia showed yields rose by 14%

# European Union Palm oil imports stood at 3.6 million tonnes, down 15 percent from 4.3 million a year earlier, the data showed.

Crude palm oil prices in spot market dropped by 5.30 rupees and settled at 560.50 rupees.