CPO settled flat tracking weakness in spot demand and overseas prices as a round of technical selling pressured prices. Worries that rising edible oil supplies would outstrip global demand also lingered, as investors fretted that sluggish exports could keep palm oil stockpiles elevated. The official report on December end-stocks, exports and output in the world's No. 2 producer will be released by industry regulator the Malaysian Palm Oil Board on Friday. Investors will be watching out for cargo surveyor export data for the first 10 days of January, also to be issued on Friday, to gauge food and fuel demand of the tropical oil from its biggest buyers China and India. Palm oil imports by India, the world's biggest buyer, probably climbed for a second month after farmers withheld soybean supplies because of a decline in prices. Imports of refined palm oil surged in the last six months as Indonesia raised export tax on crude palm oil and kept taxes lower on refined variants to boost exports. The Cabinet Committee on Economic Affairs is likely to consider local refiners' demand to raise the duty to 10 percent from 7.5 percent. Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said. Technically market is under short covering as market has witnessed drop in open interest by -1.94% to settled at 2068 while prices up 0.5 rupee, now CPO is getting support at 539.6 and below same could see a test of 537.3 level, And resistance is now likely to be seen at 543.5, a move above could see prices testing 545.1.

Trading Ideas:

CPO trading range for the day is 537.2-545.

Crude palm oil settled flat tracking weakness in spot demand and overseas prices as a round of technical selling pressured prices

Worries that rising edible oil supplies would outstrip global demand also lingered as sluggish exports could keep palm oil stockpiles elevated

Investors will be watching out for cargo surveyor export data for the first 10 days of January, to be issued on Friday

Crude palm oil prices in spot market dropped by 2.60 and settled at 534.10 rupees.