CPO settled down -0.18% at 512.4 amid sluggish demand in the spot market. Besides, ample inventories in the physical market too added pressure on crude palm oil prices. Palm oil stocks in Malaysia likely edged up for a third straight month in May to touch their highest since the end of January, a survey showed, as a rise in production outstripped export demand for the tropical oil. Stockpiles in Malaysia, the world's second-largest producer, have grown continuously since the beginning of March due to higher crude palm oil output amid poor global demand. A further rise in inventories would add pressure on benchmark palm prices that are already down nearly 10 percent this year. May's palm output was seen rising 7.1 percent to 1.67 million tonnes, according to the survey. Exports were forecast at 1.36 million tonnes, up 8.0 percent from April. Palm demand had been expected to surge in April and May, with buyers in India, Pakistan and the Middle East restocking ahead of the Muslim holy month of Ramadan, which begins in late June this year and ends with the Eid al-Fitr festival in July. India's new government will not raise duties on palm oil in the short-term, despite demands by domestic oilseed processors to cut cheap imports from the world's top producer Indonesia, official sources said. Technically market is under fresh selling as market has witnessed gain in open interest by 16.72% to settled at 1906 while prices down -0.9 rupee, now CPO is getting support at 510.2 and below same could see a test of 508.1 level, And resistance is now likely to be seen at 514.2, a move above could see prices testing 516.1.

Trading Ideas:

CPO trading range for the day is 508.1-516.1.

Crude palm oil prices dropped amid sluggish demand in the spot market.

Palm oil stocks in Malaysia likely edged up for a third straight month in May to touch their highest since the end of January.

Stockpiles in Malaysia have grown continuously since the beginning of March due to higher crude palm oil output amid poor global demand.

Crude palm oil prices in spot market gained by 1.90 and settled at 512.80 rupees.