CPO settled down -0.59% at 540 on account of weak demand along with increased arrivals in the spot market. The prices also fell due to a weakening trend in overseas markets. Meanwhile, some market men preferred to be on the sidelines and wait for the prices of the commodity to dip to initiate fresh buying activities. Indonesia and Malaysia -- which together account for nearly all of the world's palm oil supply -- expect their palm production to climb in 2014, fanning fears that their supply may outstrip food and fuel demand. Indonesia said its 2013 palm oil output likely grew to 24.4 million tonnes and could rise further to 28 million tonnes in 2014, while No. 2 producer Malaysia expects to hit a record 19.4 million tonnes in 2013 and inch up to 19.5 million tonnes this year. Prospects of higher production of competing oilseeds have dragged on U.S. and China soy markets tracked by palm oil. Larger soybean crops would mean more volumes to be crushed into soyoil, adding to global stockpiles. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 0.98% to settled at 2479 while prices down -3.2 rupee, now CPO is getting support at 538.8 and below same could see a test of 537.7 level, And resistance is now likely to be seen at 541.5, a move above could see prices testing 543.1.

Trading Ideas:

CPO trading range for the day is 537.7-543.1.

Crude palm oil ended with losses on account of weak demand along with increased arrivals in the spot market.

The prices also fell due to a weakening trend in overseas markets.

Technically market is under fresh selling as market has witnessed gain in open interest by 0.98% to settled at 2479

Crude palm oil prices in spot market dropped by 3.10 and settled at 536.70 rupees.