CPO settled up 0.4% at 549.4 after a better-than-expected export data for the first 10 days of the month signalled stronger demand for the tropical oil as buyers replenished stocks ahead of a Muslim festival.  However, recent rains in the top producing countries which have eased the threat of a supply shortfall, capped some gains. Export demand for Malaysian palm products only picked up marginally in April compared with a month ago, according to cargo surveyor data. Indonesia's industry ministry is considering changes to the country's palm oil export tax system, a government official said, as the top producer and exporter of the edible oil looks to further promote downstream industries. Southeast Asia's biggest economy - forecast to produce between 28 million and 30 million tonnes of crude palm oil and export around 21 million tonnes this year. Malaysia palm oil exports fell 6% to 722,170 tons in Apr 1-20 compared to 767,785 tons for the same period a month ago, data from Intertek a private surveyor showed. Another data from SGS showed Malaysia palm oil exports dropped 6% on month to 717,842 tons in Apr 1-20 compared to 763,363 tons for the same period a month ago. Market players had expected demand for palm oil, used in foods ranging from margarine to cookies and chocolates, to increase as buyers restock ahead of the Muslim festival of Eid al-Fitr and the holy month of Ramadan. Technically market is under short covering as market has witnessed drop in open interest by -1.09% to settled at 2360 while prices up 2.2 rupee, now CPO is getting support at 547.2 and below same could see a test of 545 level, And resistance is now likely to be seen at 551.9, a move above could see prices testing 554.4.

Trading Ideas:

CPO trading range for the day is 545-554.4.

Crude palm oil settled firm after a better-than-expected export data for the first 10 days of the month signalled stronger demand.

However, recent rains in the top producing countries which have eased the threat of a supply shortfall, capped some gains.

Export demand for Malaysian palm products only picked up marginally in April compared with a month ago, according to cargo surveyor data.

Crude palm oil prices in spot market dropped by 0.50 and settled at 548.80 rupees.