CPO settled down -1.86% at 507.1 as expectations of higher production from the major producing belts weighed on prices. Malaysia, world's second-biggest palm oil producer, crude palm oil output in Malaysia rose to 1.56 million tons in April compared to 1.49 million tons in March, data from the Malaysian Palm Oil Board (MPOB) showed. Market participants were also cautious and stayed on the sidelines awaiting more leads on export demand and production. Cargo surveyor data showed that exports of Malaysian palm oil products during May 1-25 rose 13-14 percent from a month ago, rising at a slower pace than earlier in May. Palm oil stockpiles in Malaysia, the world's second-biggest supplier, increased for a second month in April as production rose to the highest level since December. Inventories climbed 4.6 percent to 1.77 million metric tons from a month earlier, the Malaysian Palm Oil Board said. Output advanced 4 percent to 1.56 million tons and exports climbed 1.2 percent to 1.26 million tons, MPOB data showed. That compares with estimates of reserves at 1.74 million tons, production at 1.55 million tons and shipments at 1.29 million tons, according to a survey. Rising inventories may pressure futures in Kuala Lumpur, which have tumbled 12 percent since reaching an 18-month high in March. Technically market is under long liquidation as market has witnessed drop in open interest by -11.21% to settled at 2740 while prices down -9.6 rupee, now CPO is getting support at 501.2 and below same could see a test of 495.2 level, And resistance is now likely to be seen at 516.8, a move above could see prices testing 526.4.

Trading Ideas:

CPO trading range for the day is 495.2-526.4.

CPO settled down as expectations of higher production from the major producing belts weighed on prices.

Market participants were also cautious and stayed on the sidelines awaiting more leads on export demand and production.

Cargo surveyor data showed that exports of Malaysian palm oil products during May 1-25 rose 13-14 percent from a month ago

Crude palm oil prices in spot market dropped by 1.00 and settled at 523.40 rupees.