CPO settled down -1.33% at 549.2  stretching losses into a fourth straight day, as investors waited for an official report on export demand and stocks of the tropical oil in the world's second-largest producer. The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,583 ringgit ($794) per tonne by the day's close, with prices trading between 2,570-2,609 ringgit. The government has cut the base import price of crude palm oil from $935/tn to $920/tn, and refined palm oil from $964/tn to $943/tn. Palm oil Futures on KLCE traded on a negative note last week on lower than expected exports in April and settled 1.66% lower. However, expectations of improvement in demand in the coming weeks supported prices at lower levels. According to Malaysian Palm oil Board, exports declined 8% in March against February, while palm oil output jumped 17.4% and the end stocks increased 1.9%. Malaysian Palm Oil Board pegged 2013 end stocks at 1.87 mn tn as against 2.63 mn tn in 2012. Exports of Malaysian palm oil products in April increased 1.3% to 1,220,882 tonnes from 1,205,010 tonnes shipped in March. Malaysia has set the export tax for Palm oil for May at 5.5%, unchanged as against 5.5% in April. Malaysia has cut export tax for Palm oil for May to 12% as against 13.5% in April. India's crude palm oil imports declined 23.96% in March to 424,937 tn from 558,810 tn last year. Technically market is under fresh selling as market has witnessed gain in open interest by 0.57% to settled at 3012 while prices down -7.4 rupee, now CPO is getting support at 545.8 and below same could see a test of 542.3 level, And resistance is now likely to be seen at 555.8, a move above could see prices testing 562.3.

Trading Ideas:

CPO trading range for the day is 542.3-562.3.

Crude palm oil dropped on ample stocks position in the physical market following higher supplies from the major producing belts.

Cargo surveyors reported that exports of Malaysian palm oil products for April 1-25 rose 3.4 percent from the same period a month ago.

Global palm oil imports will pick up in the second quarter as demand increases before Ramadan.

Crude palm oil prices in spot market gained by 12.50 and settled at 555.40 rupees.