CPO settled down -0.68% at 524.4 driven by lower demand in the spot market. Further, ample inventories in the physical market on increased supplies from the major producing belts too added pressure on prices. Malaysia palm oil exports increased 5.3% to 1.48 million tons in Jul 1-10 compared to 1.4 million tons for the same period a month ago, data from MPOB showed. A median forecast of planters, pegged Malaysia's June ending stocks at 1.8mtns, a 2.2-percent drop from a month ago, which would mark the first fall in inventories since March.

The official report on Malaysia's end-June palm stocks, production and exports will be released by industry regulator the Malaysian Palm Oil Board. Global palm prices will only increase "modestly" despite the possible onset of an El Nino weather pattern. Malaysia has cut export tax for July to 5% from 5.5% while Indonesia has cut export tax to 10.5% from 12%. Palm oil purchases by China may decline by about 11% this year as economic expansion slows and banks tighten lending to commodity importers.

Palm oil imports by India, declined after refiners bought more soybean and sunflower oils amid record global supplies. Shipments of crude and refined palm oils slid 14% to 647,756mts last month from a year earlier, the SEA of India said. Technically market is under long liquidation as market has witnessed drop in open interest by -9.94% to settled at 2753 while prices down -3.6 rupee, now CPO is getting support at 521.5 and below same could see a test of 518.6 level, And resistance is now likely to be seen at 527.6, a move above could see prices testing 530.8.

Trading Ideas:

CPO trading range for the day is 518.6-530.8.

Crude palm oil dropped driven by lower demand in the spot market.

Further, ample inventories in the physical market on increased supplies from the major producing belts too added pressure.

Malaysia palm oil exports increased 5.3% to 1.48 million tons in Jul 1-10 compared to 1.4 million tons for the same period a month ago.

Crude palm oil prices in spot market dropped by 2.50 and settled at 533.30 rupees.