CPO settled down -0.51% at 530.7 due to fall in demand in the spot market. Further, ample inventories in the physical market on increased supplies from the major producing belts too added pressure. Prices remained in range on fear that El Nino phenomenon in Malaysia and Indonesia may hamper palm oil output from the world's two biggest palm oil producers amid higher domestic supplies and on caution ahead of Malaysia palm oil export data. India and sub-continents palm oil imports from Malaysia increased 6.14% to 367,390 tons in Jun 1-30 against 346,114 tons in May 1-30, data from Intertek a private surveyor showed. The surveyor will release its July month data in coming week. A median forecast of planters, pegged Malaysia's June ending stocks at 1.8mtns, a 2.2-percent drop from a month ago, which would mark the first fall in inventories since March. The official report on Malaysia's end-June palm stocks, production and exports will be released by industry regulator the Malaysian Palm Oil Board. Exports of Malaysian palm oil products in June increased 5.8% to 1,391,942 tonnes from 1,315,952 tonnes shipped in May. Malaysia has cut export tax for July to 5% from 5.5% while Indonesia has cut export tax to 10.5% from 12%. Palm oil purchases by China may decline by about 11% this year as economic expansion slows and banks tighten lending to commodity importers. Technically market is under fresh selling as market has witnessed gain in open interest by 3.77% to settled at 3829 while prices down -2.7 rupee, now CPO is getting support at 528.8 and below same could see a test of 526.9 level, And resistance is now likely to be seen at 532.6, a move above could see prices testing 534.5.

Trading Ideas:

CPO trading range for the day is 526.9-534.5.

Crude palm oil ended with losses due to fall in demand in the spot market.

Further, ample inventories in the physical market on increased supplies from the major producing belts too added pressure.

Prices remained in range on fear that El Nino phenomenon in Malaysia and Indonesia may hamper palm oil output.

Crude palm oil prices in spot market dropped by 1.00 and settled at 534.80 rupees.