CPO settled down -0.36% at 551.9 on renewed concerns over demand and thin trading at the start of the New Year. Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said. India, the world's largest consumer for palm oil, is likely to trim on their palm oil imports as the nation pushes for domestic oilseed production through giving incentives to local farmers with higher purchase prices, a move to improve the current account deficit.

As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during December stood at 1.43 million metric tonnes, down 1.10% over the same period in December, 2012 . Higher selling pressure in producing centres for indigenous oils and improved arrivals of oilseeds kept the market under check. Sources said that despite local refineries slashing their rates for palmolein there were no fresh buyers. Malaysia, the world's No. 2 palm oil producer, has kept its crude palm oil export tax for January unchanged at 5 percent, a government circular showed.

The Southeast Asian country calculated a reference price of 2,549.98 ringgit ($789) per tonne for crude palm oil for January, effectively keeping the export duty at 5 percent. Technically market is under long liquidation as market has witnessed drop in open interest by -13.03% to settled at 3077 while prices down -2 rupee, now CPO is getting support at 550.1 and below same could see a test of 548.3 level, And resistance is now likely to be seen at 553.6, a move above could see prices testing 555.3.

Trading Ideas:

CPO trading range for the day is 548.3-555.3.

Crude palm oil prices dropped on renewed concerns over demand and thin trading at the start of the New Year.

Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes shipped during November

India, the world's largest consumer for palm oil, is likely to trim on their palm oil imports as the nation pushes for domestic oilseed production

Crude palm oil prices in spot market gained by 1.90 and settled at 545.90 rupees.