CPO settled down -1.19% at 529.8 as concerns of higher stocks amid sluggish export demand continued to weigh on investor sentiment. Malaysian end-stocks rose to 1.99 million tonnes in December from a month earlier, the Malaysian Palm Oil Board said on Friday, hitting their highest in nine months as lackluster demand offset a fall in output caused by monsoon floods. Market players had expected inventories to fall to 1.96 million tonnes. Weaker-than-expected exports in the Jan. 1-10 period also dragged on benchmark prices. Cargo surveyors reported that Malaysian palm exports plunged 22 percent from a month ago as crude palm oil shipments slowed and buyers from India, Europe and Pakistan cut back purchases. India increased import duties on refined edible oils, including palm oil, to 10 percent from 7.5 percent to protect local oilseed growers and refiners against cheaper supplies from major exporters. The decision could shift demand in India, the world's leading importer of vegetable oils, to crude palm oil (CPO), benefiting Malaysian exporters as the country charges a lower duty on overseas CPO sales than rival producer Indonesia. India's refined palm oil imports surged 40.5 percent to 2.2 million tonnes in the year to October 2013 as Indonesia structured taxes to favour exports of refined products over crude to support its refining industry. Technically market is under fresh selling as market has witnessed gain in open interest by 1.38% to settled at 2284 while prices down -6.4 rupee, now CPO is getting support at 527.8 and below same could see a test of 525.8 level, And resistance is now likely to be seen at 533.5, a move above could see prices testing 537.2.

Trading Ideas:

CPO trading range for the day is 527.9-539.3.

Crude palm oil ended with losses as concerns of higher stocks amid sluggish export demand continued to weigh on investor sentiment.

Malaysian end-stocks rose to 1.99 million tonnes in December from a month earlier, the Malaysian Palm Oil Board said, hitting their highest in nine months

India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier.

Crude palm oil prices in spot market dropped by 2.90 and settled at 527.20 rupees.