CPO settled down -0.82% at 520.1 on weak demand from domestic and local oil crushers. Further, ample inventories in the physical market on increased supplies from the major producing belts too added pressure on prices. Imports of palm oil by India, the world’s largest buyer, probably dropped for a second month as a shrinking discount to soybean and sunflower oils cut its appeal. 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. Shipments of the main crude and refined palm oils fell 3.8 percent to 625,000 metric tons in June from a year earlier. Palm’s discount to soybean oil has contracted about 65 percent in the past year amid forecasts for a record U.S. soybean harvest. While purchases dropped in June, weak monsoon rains are hurting oilseed crops in India and may spur imports later this year. The monsoon, which provides more than 70 percent of annual rainfall, will be 93 percent of a 50-year average from June to September as an El Nino emerges, the India Meteorological Department said. 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%. Technically market is under long liquidation as market has witnessed drop in open interest by -1.53% to settled at 2711 while prices down -4.3 rupee, now CPO is getting support at 516.9 and below same could see a test of 513.8 level, And resistance is now likely to be seen at 524.2, a move above could see prices testing 528.4.

Trading Ideas:

CPO trading range for the day is 513.8-528.4.

Crude palm oil extended fall on weak demand from domestic and local oil crushers.

Imports of palm oil by India probably dropped for a second month as a shrinking discount to soybean and sunflower oils cut its appeal.

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 3.60 and settled at 532.20 rupees.