CPO settled down -1.15% at 506.7 as expectations of higher output from the major producing belts. However, restricted arrivals from producing regions and expectations of improved global demand, capped some losses in crude palm oil prices to some extent. 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. 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. 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. Palm oil production in top growers Indonesia and Malaysia could pick up in the final months of this year, keeping a lid on prices, although some in the market are still worried about a potential El Nino plus tree stress in Malaysia. However, Malaysia, the second-biggest producer, churned out 9.1 million tonnes of crude palm oil between January and June, up from 8.4 million in the same period last year. Technically market is under fresh selling as market has witnessed gain in open interest by 5.19% to settled at 5396 while prices down -5.9 rupee, now CPO is getting support at 504.2 and below same could see a test of 501.8 level, And resistance is now likely to be seen at 511, a move above could see prices testing 515.4.

Trading Ideas:

CPO trading range for the day is 501.8-515.4.

CPO dropped as expectations of higher output from the major producing belts.

However, restricted arrivals from producing regions and expectations of improved global demand, capped some losses.

The Malaysian Palm Oil Board, the industry regulator, sees output hitting a record 19.5 million tonnes this year versus 19.2 million in 2013.

Crude palm oil prices in spot market dropped by 4.90 and settled at 523.20 rupees.