CPO settled down -0.11% at 544.3 on the back of weak demand in the spot market. The trading sentiment weakened further due to adequate supplies from producing belts and profit booking by the traders. However, the prices found some support from a firming trend in overseas markets on speculation that rising demand in China may counter a build-up in stockpiles in Malaysia as output expands seasonally in the world's second-largest producer. Investor remained cautious ahead of the Sept. 1-10 export numbers and official August stocks data from the Malaysian Palm Oil Board (MPOB) due on Tuesday. Inventory levels at end-August likely rose to 1.73 million tonnes, its highest level in three months as output outweighed exports, a survey showed. Malaysia's August palm oil stocks likely grew to their largest level in three months as output outweighed exports, a survey showed, although healthy demand for the tropical oil kept stockpiles in check. Inventory levels in the world's No. 2 producer may have rose 4 percent to 1.73 million tonnes, its highest level since May, according to the median forecast of five plantation firms. Exports of Malaysian palm oil likely stood at 1.53 million tonnes in August, a 7.8 percent increase from a month ago. Malaysia has enjoyed healthy demand from China as the world's second-largest palm oil buyer stocked up ahead of its Mid-Autumn festival in September. Technically market is under fresh selling as market has witnessed gain in open interest by 2.97% to settled at 2945 while prices down -0.6 rupee, now CPO is getting support at 541.3 and below same could see a test of 538.4 level, And resistance is now likely to be seen at 546.1, a move above could see prices testing 548.

Trading Ideas:

CPO trading range for the day is 181.4-181.4.

Crude palm oil ended with losses on the back of weak demand in the spot market.

The trading sentiment weakened further due to adequate supplies from producing belts and profit booking

Exports of Malaysian palm oil likely stood at 1.53 million tonnes in August, a 7.8 percent increase from a month ago.

Crude palm oil prices in spot market dropped by Rs 1.00 and settled at 553.10 rupees.