CPO settled down -0.56% at 546.5 tracking weakness in spot demand and overseas prices after initial data showed exports from the world's second-largest producer dropped more than 7 percent so far this month. Exports of palm oil products from Dec. 1-25 fell 7.3 percent to 1,139,705 tonnes from 1,229,580 tonnes shipped during Nov. 1-25, said surveyor Intertek Testing Services. Another surveyor, SGS, will release its report later in the day. The Meteorological Department issued a warning on a possible second wave of flood in state of Pahang in Peninsular Malaysia, beginning Dec 30. The recent floods in Pahang forced more than 40,000 victims to be evacuated to relief centres. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during December 1-15 declined by 14.10% from the same period in November to 6.40 lakh metric tonnes. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during November 1-25 stood at 1.23 million metric tonnes, unchanged from the October. As per the release from Malaysian Palm Oil Board (MPOB), the total stocks of palm oil in Malaysia are likely to reach 1.87 million tonnes by the end of 2013 against 2.63 million in the previous year. This is mainly due to restricted buying by international buyer. Technically market is under long liquidation as market has witnessed drop in open interest by -1.84% to settled at 3423 while prices down -3.1 rupee, now CPO is getting support at 544.7 and below same could see a test of 543 level, And resistance is now likely to be seen at 549.5, a move above could see prices testing 552.6.

Trading Ideas:

CPO trading range for the day is 543.2-552.8.

Crude palm oil ended with losses tracking weakness in spot demand and overseas prices.

Exports of palm oil products from Dec. 1-25 fell 7.3 percent to 1,139,705 tonnes from 1,229,580 tonnes shipped during Nov. 1-25

Technically market is under long liquidation as market has witnessed drop in open interest by -1.84% to settled at 3423

Crude palm oil prices in spot market dropped by 2.70 and settled at 541.30 rupees.