Crude Palm Oil yesterday traded with the negative node and settled -0.45% down at 550.3 as improving output and slower exports in the Southeast Asian country stirred concerns over swelling stocks. Stockpiles in Malaysia rose to 2.0 million tons as of July 31, climbing quickly from a 14-month low of 1.70 million tons on the back of strong production and lower CPO demand. Toward end-July, the government allowed the export of an extra 2 million tons of CPO at zero duty to prevent a build-up in stocks in the high production months that would have weighed on prices. The decision takes the overall duty-free export quota to 5.6 million tons for 2012, equivalent to 30% of Malaysia's overall CPO output. Palm oil stockpiles had risen to 2.0 million tons as of July 31, climbing quickly from a 14-month low of 1.70 million tons June 30, the Malaysian Palm Oil Board said in a crop report. Malaysia's palm oil inventory level touched its highest since February at nearly two million tonnes in July, snapping four straight months of losses, thanks to improving output and lacklustre demand. In yesterday's trading session Crude Palm oil has touched the low of 548.2 after opening at 551, and finally settled at 550.3. For today's session market is looking to take support at 548.5, a break below could see a test of 546.7 and where as resistance is now likely to be seen at 551.8, a move above could see prices testing 553.3.

Trading Ideas:

CPO trading range for the day is 546.7-553.3.

Crude palm oil ended down as improving output and slower exports stirred concerns over swelling stocks.

Stockpiles in Malaysia rose to 2.0 mln tons, climbing quickly from a 14-month low of 1.70 million tons

Malaysia's palm oil inventory level touched its highest since February at nearly two million tonnes in July

Crude palm oil prices in spot market dropped by 1.90 rupees and settled at 550.10 rupees.