CPO settled up 0.8% at 529.9 driven by higher demand from consuming industries in the spot market but sluggish exports put a lid on gains. Tight stocks position in the physical market due to restricted arrivals from producing belts also supported the upside. Besides, a firming trend in overseas markets also supported the uptrend. Meanwhile, the recent hike in India’s import tax of processed palm oil products to 10% from 7.5% has resulted into higher demand for Crude palm oil from India as the refining process is encouraged to be done domestically to save costs, pushing the prices of palm oil futures higher. Malaysia, the world's No.2 palm oil producer, has kept its crude palm oil export tax for February unchanged at 5 percent, a government circular showed. India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier. India increased import duties on refined edible oils, including palm oil, to 10 percent from 7.5 percent to protect local oilseed growers and refiners against cheaper supplies from major exporters. The decision could shift demand in India, the world's leading importer of vegetable oils, to crude palm oil (CPO), benefiting Malaysian exporters as the country charges a lower duty on overseas CPO sales than rival producer Indonesia. Technically market is under short covering as market has witnessed drop in open interest by -1.1% to settled at 1618 while prices up 4.2 rupee, now CPO is getting support at 526.8 and below same could see a test of 523.7 level, And resistance is now likely to be seen at 532.3, a move above could see prices testing 534.7.

Trading Ideas:

CPO trading range for the day is 523.8-534.8.

Crude palm oil ended with gains driven by higher demand from consuming industries in the spot market but sluggish exports put a lid on gains.

Tight stocks position in the physical market due to restricted arrivals from producing belts also supported the upside.

The recent hike in India’s import tax of processed palm oil products to 10% from 7.5% has resulted into higher demand

Crude palm oil prices in spot market gained by 5.80 and settled at 527.10 rupees.