CPO settled down -2.16% at 448.5 tracking weakness in spot demand amid anxiety about swelling supplies of global edible oils also weighed. Palm oil production has also surprised us on the higher side. Malaysia’s output climbed 6.6 percent to 10.7 million tons in the first seven months of the year from the same period in 2013, government data show. Palm oil shipments from Indonesia, the world’s largest producer, expanded to the highest level in seven months in July after India and countries in Africa increased purchases amid a decline in prices. Exports rose to 1.84 million metric tons from 1.79 million tons in June, the Indonesian Palm Oil Association. Palm entered a bear market last month as favorable weather boosted the outlook for U.S. soybean crops, estimated to be the largest ever. Prices also slumped as demand for biofuels missed expectations and forecasts for an El Nino weather, which can disrupt supplies, were scaled back.  Production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year. Global ending stockpiles of palm oil will increase 10 percent to 8.7 million tons in 2014-2015, according to a forecast from the USDA.  Malaysian palm oil exports fell 15.2% to 570,761 tons during Aug 1-15 compared to 673,463 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed. Technically market is under long liquidation as market has witnessed drop in open interest by -7.08% to settled at 2154, now CPO is getting support at 442.8 and below same could see a test of 437.1 level, And resistance is now likely to be seen at 458.6, a move above could see prices testing 468.7.

Trading Ideas:

CPO trading range for the day is 437.1-468.7.

Crude palm oil dropped tracking weakness in spot demand amid anxiety about swelling supplies of global edible oils also weighed.

Malaysia’s output climbed 6.6 percent to 10.7 million tons in the first seven months of the year from the same period in 2013, government data show.

Palm oil shipments from Indonesia, the world’s largest producer, expanded to the highest level in seven months in July.

Crude palm oil prices in spot market gained by 1.20 and settled at 486.20 rupees.