Crude palm oil ended with losses due to sluggish demand in the spot market. Further, availability of ample stocks in the physical market too influenced the commodity prices, however concerns that dry weather in Brazil may damage soybean crop in the world's biggest exporter, trimming global cooking oil inventories, capped the losses in crude palm oil prices to some extent. In Malaysia palm oil production in the January and February month slows seasonally as the tress goes on rest from December which will result to lower yields. 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. Exports of Malaysian palm oil products in Feb. 1-10 rose 4-8 percent from a month ago, cargo surveyors reported, but investors say shipment volumes will have to pick up faster to keep prices propped up. 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. Malaysian average palm prices could climb for a second straight year to 2,700 ringgit in 2014, a poll showed, as strong demand from the biofuel industry eats into supplies of the tropical oil from top producers Indonesia and Malaysia. But forecasts for bumper production of rival soyoil, as well as seasonally higher palm output in Malaysia from June onwards, could drag on prices, the poll showed. Technically market is under fresh selling as market has witnessed gain in open interest by 0.94% to settled at 1506 while prices down -0.2 rupee, now CPO is getting support at 545.3 and below same could see a test of 542.5 level, And resistance is now likely to be seen at 550.9, a move above could see prices testing 553.7.

Trading Ideas:

CPO trading range for the day is 542.8-554.

Crude palm oil ended with losses due to sluggish demand in the spot market.

Further, availability of ample stocks in the physical market too influenced the prices.

In Malaysia palm oil production in the January and February month slows seasonally as tress goes on rest from December which will result to lower yields

Crude palm oil prices in spot market gained by 1.10 and settled at 550.40 rupees.