Crude palm Oil on MCX settled down by -1.36% at 531.2 tracking weakness in spot demand and overseas prices due to cut in the tariff charges coupled with sufficient stocks with stockists and pipeline. Government has cut base import prices (tariff charges) for palm products in India for the second successive fortnight making prices cheaper to import. For 1 st half of Mar, the prices of CPO and RBD palm oil cut by $30 and $11 a tonnes respectively. Palm oil production in February is seen declining from a month ago according to poll, which pegged output to fall 4.5 % to 1.22 mt. Malaysia's palm oil inventories likely fell to their lowest in six months at the end of February. Stockpiles in Malaysia in February may fell 4.4% according to the median forecast of eight planters, traders and analysts in a Reuters poll, from a month earlier to 1.47 mt. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -4.51% to settled at 4403 while prices down -7.3 rupees, now CPO is getting support at 527.7 and below same could see a test of 524.2 level, And resistance is now likely to be seen at 537.1, a move above could see prices testing 543.

Trading Ideas:

CPO trading range for the day is 524.2-543.

Crude palm oil prices dropped tracking weakness in spot demand and overseas prices due to cut in the tariff charges.

Government has cut base import prices for palm products in India for the second successive fortnight making prices cheaper to import.

Palm oil production in February is seen declining from a month ago, which pegged output to fall 4.5 % to 1.22 mt.

Crude palm oil prices in spot market dropped by 2.50 rupees and settled at 548.80 rupees.