Crude palm oil settled flat on profit booking at prevailing higher levels, driven by subdued demand in the spot market against ample stocks position. However, the hike in India's processed palm oil import tax to 10% from 7.5% has resulted into higher demand for Crude palm oil from India as the refining process is encouraged to be done domestically to save costs capped the losses to some extent. Cargo surveyor Intertek Testing Services said that Malaysian exports of palm oil products from Jan. 1-25 fell 9.4 percent compared to a month ago, improving from steeper declines recorded in early January. Market participants are looking for more clues on global demand for palm oil, used in a wide variety of household products from soaps to cookies and chocolate. Malaysia Jan 1-20 palm oil exports dropped 15% on month to 748,303 tons, data release by Intertek showed. India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier, data release from the Solvent Extractors Association (SEA) of India. India total edible oil imports in 2014-15 to record of 11 million tons on improved demand from the world's top edible oil consumer. Technically market is under short covering as market has witnessed drop in open interest by -0.26% to settled at 2636 while prices up 0.1 rupee, now CPO is getting support at 537.3 and below same could see a test of 535.4 level, And resistance is now likely to be seen at 540.8, a move above could see prices testing 542.4.

Trading Ideas:

CPO trading range for the day is 535.6-542.6.

Crude palm oil settled flat on profit booking at prevailing higher levels, driven by subdued demand in the spot market.

The hike in India's processed palm oil import tax to 10% from 7.5% has resulted into higher demand for Crude palm oil from India

Malaysian exports of palm oil products from Jan. 1-25 fell 9.4 percent compared to a month ago

Crude palm oil prices in spot market gained by 0.30 and settled at 529.30 rupees.