CPO settled down -0.15% at 528.9 on late profit booking after prices rose due to pickup in demand in the spot market against restricted arrivals from the major producing belts. Further, the hike in India's processed palm oil import tax 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 too supported crude palm oil prices. Palm oil stocks in Malaysia could be lower and range between 1.6 million and 1.8 million tonnes at the end of this year, a senior official from the Malaysian Palm Oil Board said on Thursday, as growing demand for the tropical oil outstrips bigger output. Malaysian 2014 palm exports are seen at 18.5 million tonnes, a tad higher than 18.12 million tonnes shipped in 2013, a senior MPOB official said at an industry meet in Kuala Lumpur. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -9.04% to settled at 1268 while prices down -0.8 rupee, now CPO is getting support at 527.5 and below same could see a test of 526.2 level, And resistance is now likely to be seen at 531.5, a move above could see prices testing 534.2.

Trading Ideas:

CPO trading range for the day is 526.5-534.5.

CPO settled down on late profit booking after prices rose due to pickup in demand in the spot market against restricted arrivals

Palm oil stocks in Malaysia could be lower and range between 1.6 million and 1.8 million tonnes at the end of this year

Refined palmolein imports are projected to climb to 3.80 million tonnes from 2.22 million tonnes.

Crude palm oil prices in spot market gained by 1.10 and settled at 529.50 rupees.