Crude Palm Oil yesterday traded with the negative node and settled -0.82% down at 401.1 as technical selling weighed on prices, although losses were curbed by investor optimism that a new export tax next year will boost shipments of the crude grade and cut stocks. Malaysia, the world's No.2 producer of the tropical oil, has faced record high stocks since September, which seen prices fall 27 percent this year -- the worst annual performance since 2008. The low prices have enabled the Malaysian government to set the crude palm oil export tax for January at zero percent, which could see Malaysia grab more market share from top producer Indonesia. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during December 1-20 declined by 1.90% from the same period in November to 10 lakh metric tonnes. Expectations of rising palm oil inventories due to lackluster global demand amid seasonally high production in top producers Indonesia and Malaysia weighed on palm oil prices. In yesterday's trading session Crude Palm oil has touched the low of 401.1 after opening at 403, and finally settled at 401.1. For today's session market is looking to take support at 399.6, a break below could see a test of 398 and where as resistance is now likely to be seen at 404.2, a move above could see prices testing 407.2.
CPO trading range for the day is 398.03-407.23.
Crude palm oil edged lower as technical selling weighed on prices tracking weak spot demand.
Malaysia has faced record high stocks since September, which seen prices fall 27 percent this year
Malaysia's palm oil exports during December 1-20 declined by 1.90% to 10 lakh metric tonnes.
Crude palm oil prices in spot market dropped by 2.40 rupees and settled at 395.90 rupees.
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