CPO settled up 0.2% at 550.9 tracking firmness in spot demand and overseas prices while export data signalled a small recovery in demand for the tropical oil. Monsoon floods in several palm-growing parts of Malaysia also fanned worries that output in the world's second-largest producer would fall steeply in December and potentially tighten supplies, keeping prices propped up. Cargo surveyor data Intertek Testing Services reported that Malaysian palm oil shipments in Dec. 1-20 dropped 12 percent to 883,575 tonnes from a month ago, slightly improving from the steeper declines recorded in early December. Another cargo surveyor Societe Generale de Surveillance showed that exports fell 9.8 percent for the same period, with shipments to China picking up from a month ago. Malaysia's Meteorological Department terminated its "yellow stage" advisory of heavy rains over the key palm producing states of Johor and Pahang, but it had earlier warned that floods could occur over low-lying areas. India is likely to import a record 4 million tonnes of refined palm oil in 2013/14 as export taxes in key supplier Indonesia make it cheaper than the crude variety, an executive at India's top edible oil buyer said. Indonesia, the world's biggest palm oil producer, in November hiked its crude palm oil export tax to 12 percent for December shipments, compared to 6 percent for the refined variant. Technically market is under short covering as market has witnessed drop in open interest by -1.33% to settled at 1489 while prices up 1.1 rupee, now CPO is getting support at 549.8 and below same could see a test of 548.8 level, And resistance is now likely to be seen at 551.8, a move above could see prices testing 552.8.

Trading Ideas:

CPO trading range for the day is 548.8-552.8.

Crude palm oil gains tracking firmness in spot demand and overseas prices while export data signalled a small recovery in demand

Monsoon floods in several palm-growing parts of Malaysia also fanned worries that output would fall steeply in December

India is likely to import a record 4 million tonnes of refined palm oil in 2013/14 as export taxes in Indonesia make it cheaper than the crude variety

Crude palm oil prices in spot market gained by 0.70 and settled at 545.90 rupees.