CPO settled up 0.66% at 537 following rising demand in the spot markets on the back of firming global trend. 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's January palm oil exports fell 11 percent from a month ago to about 1.3 million tonnes shipped, cargo surveyor data showed, raising worries that end-stocks in the second-largest producer will continue to climb from the current 1.99 million tonnes. Some market participants are hoping that palm oil supply in January would have fallen as well, as trees enter a seasonally slower production cycle that is expected to last through the first half of the year. The country palm oil imports from Malaysia jumped 3.5% to 30,743 tons in Jan 1-25 compared to 290,430 tons for the same period month ago, data from Intertek showed. Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek showed. Technically market is under short covering as market has witnessed drop in open interest by -8.1% to settled at 3052 while prices up 3.5 rupee, now CPO is getting support at 535.4 and below same could see a test of 533.8 level, And resistance is now likely to be seen at 538.2, a move above could see prices testing 539.4.

Trading Ideas:

CPO trading range for the day is 533.9-539.5.

Crude palm oil ended with gains following rising demand in the spot markets on the back of firming global trend.

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

The country palm oil imports from Malaysia jumped 3.5% to 30,743 tons in Jan 1-25 compared to 290,430 tons for the same period

Crude palm oil prices in spot market gained by 4.50 and settled at 535.20 rupees.