CPO settled down -0.18% at 549.5 tracking weak domestic demand. The trading sentiment weakened further due to adequate supplies from producing belts and profit booking by the traders. Meanwhile, a weakening trend in overseas markets also put pressure on the palm oil prices. China's refined palm oil imports could be hit as buyers struggle for funding, the latest casualty in Beijing's crackdown on commodity financing in the face of slowing domestic demand. China's palm oil imports in January-March eased slightly to 1.47 million tonnes from 1.49 million tonnes a year ago, with sources saying a larger drop is to come. Malaysian palm oil stocks inched up to a three-month high in April as output of the tropical oil continued to rise, a survey ahead of official data showed, with a pick up in export demand checking a greater rise in inventories. Production was seen at a median of 1.53 million tonnes, up 2.4 percent, and the highest level since December
2013. Cargo surveyors earlier reported that Malaysia's palm exports in April rose between 1.3 and 1.7 percent to about 1.22 million tonnes compared to a month ago, with bigger imports from the world's top edible oil buyers India and China, as well as Pakistan, offseting weaker demand in Europe and the United States. Fears that an El Nino weather pattern will heavily disrupt Southeast Asian palm output this year have begun to fade, with no signs of an impact in top producers so far. Technically market is under long liquidation as market has witnessed drop in open interest by -10.25% to settled at 2469 while prices down -1 rupee, now CPO is getting support at 547.8 and below same could see a test of 546.1 level, And resistance is now likely to be seen at 551.6, a move above could see prices testing 553.7.

Trading Ideas:

CPO trading range for the day is 546.1-553.7.

Crude palm oil seen under pressure tracking weak domestic demand.

China's palm oil imports in January-March eased slightly to 1.47 million tonnes from 1.49 million tonnes a year ago.

Cargo surveyors reported that Malaysia's palm exports in April rose between 1.3 and 1.7 percent to about 1.22 million tonnes.

Crude palm oil prices in spot market gained by 0.70 and settled at 552.20 rupees.