CPO settled down -0.44% at 516.2 on weak demand from domestic consumer amid caution ahead of Malaysia palm oil export data. Further, restricted arrivals from producing regions and expectations of improved global demand limited the upside. Exports of Malaysian palm oil products for July 1-15 rose 14.2 percent to 673,463 tonnes from 589,748 tonnes during June 1-15, cargo surveyor Intertek Testing Services said. Indonesia is expected to export between 19 million and 20 million tonnes of palm oil in 2014, according to a leading industry association, a decline of up to 9.5 percent from the 21 million tonnes the world's top producer shipped in 2013. Exports in the first half of 2014 amounted to 9.75 million tonnes, down from around 11 million tonnes in the first half of 2013. Malaysia, the world's second-largest palm grower, has kept its crude palm oil export tax for August at 5 percent, a government circular showed, the same as a month ago. The rate was lowered to 5.0 percent in July after being kept unchanged at 5.5 percent since April. Palm oil imports by India, the world’s biggest buyer, declined for a second month in June as refiners bought more sunflower oil after prices retreated on rising global cooking oil supplies. India imports more than 50 percent of its demand, shipping palm oil from Indonesia and Malaysia. Technically market is under long liquidation as market has witnessed drop in open interest by -19.31% to settled at 3987 while prices down -2.3 rupee, now CPO is getting support at 514.6 and below same could see a test of 512.9 level, And resistance is now likely to be seen at 519, a move above could see prices testing 521.7.

Trading Ideas:

CPO trading range for the day is 512.9-521.7.

Crude palm oil ended with losses on weak demand from domestic consumer amid caution ahead of Malaysia palm oil export data.

Further, restricted arrivals from producing regions and expectations of improved global demand limited the upside.

Exports of Malaysian palm oil products for July 1-15 rose 14.2 percent to 673,463 tonnes from 589,748 tonnes during June 1-15.

Crude palm oil prices in spot market dropped by 0.40 and settled at 539.00 rupees.