Crude palm Oil on MCX settled up by 2.61% at 546.8 tracking firmness in spot demand and overseas prices amid supply worries from Indonesia. Output of CPO from Indonesia during January is expected to fall by 8.38% to 2.95 million tons as compared to 3.22 million tons in December month. Malaysia palm oil exports during Feb 1-20 fell by around 2% compared to a month earlier on subdued demand from China, European Union and Middle East, data showed. Malaysia palm oil exports fell to 907,078 tons during Feb 1-25 compared to 924,282 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Domestic palm oil prices were also under pressure on strong Indian rupee against the dollar which boosted prospects of higher imports, indicating higher supply situation. 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. According to Malaysia Palm Oil Board (MPOB), Malaysia increased March crude palm oil export duty to 8 percent from 7.5 percent in February. Technically market is under short covering as market has witnessed drop in open interest by -17.43% to settled at 3765 while prices up 13.9 rupees, now CPO is getting support at 535.6 and below same could see a test of 524.4 level, And resistance is now likely to be seen at 553.4, a move above could see prices testing 560.

Trading Ideas:

# CPO trading range for the day is 524.4-560.

# Crude palm oil gained tracking firmness in spot demand and overseas prices amid supply worries from Indonesia.

# Output of CPO from Indonesia during January is expected to fall by 8.38% to 2.95 million tons.

# Palm oil imports fell for the third consecutive month by 11.56 per cent to 608,762 tonnes in January.

Crude palm oil prices in spot market dropped by 1.60 rupees and settled at 543.90 rupees.