CPO settled up 0.34% at 533 due to expectations of higher demand in the coming months as the weather becomes warmer. Further, the hike in India’s processed palm oil import tax to 10% from 7.5% has resulted into higher demand for domestic Crude palm oil in India as the refining process is been encouraged to be done domestically to save costs, too supported crude palm oil prices to some extent. Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek 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, data release from the Solvent Extractors Association (SEA) of India. India total edible oil imports in 2014-15 to record of 11 million tons on improved demand from the world's top edible oil consumer. 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.  The decision could shift demand in India, the world's leading importer of vegetable oils, to CPO, benefiting Malaysian exporters as the country charges a lower duty on overseas CPO sales than rival producer Indonesia. Technically market is under fresh buying as market has witnessed gain in open interest by 1.33% to settled at 2980 while prices up 1.8 rupee, now CPO is getting support at 531.4 and below same could see a test of 529.7 level, And resistance is now likely to be seen at 534.3, a move above could see prices testing 535.5.

Trading Ideas:

CPO trading range for the day is 529.4-535.2.

Crude palm oil ended with gains due to expectations of higher demand in the coming months as the weather becomes warm.

Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek 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.

Crude palm oil prices in spot market dropped by 0.40 and settled at 524.10 rupees.