Crude palm Oil on MCX settled down by -0.34% at 579.2 after the import duty on crude palm oil have been reduced to 15 percent. Besides, ample stocks position on higher supplies from producing belts also weighed on crude palm oil prices. India's palm oil imports in 2016/17 are likely to rise 9 percent to 9.24 mt from a year earlier, as a growing population and higher income levels drive up edible oil consumption. Palm oil imports by India fell for a fourth month in August dropped by 16% to 540,633 metric tons in August from a year earlier. SEA data showed imports of palm oil almost doubled to 2.2 mt in Nov-Aug, compared with 1.3 mt a year ago. Malaysia’s total palm oil stocks fell 17.29 per cent to 1.46 million tonnes in August against 1.77 million tonnes in the previous month, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil stocks declined 25.78 per cent to 757,405 tonnes in August from 1.02 million tonnes at end-July. The MPOB said processed palm oil stocks dropped 5.73 per cent to 707,086 tonnes in August versus 750,096 tonnes in July. It said crude palm oil output in August increased 7.32 per cent to 1.70 million tonnes from 1.59 million tonnes in July. Palm kernel output rose 9.72 per cent to 403,245 tonnes in August compared with 367,516 tonnes in the previous month, it said. Technically market is under long liquidation as market has witnessed drop in open interest by -21.31% to settled at 3448 while prices down -2 rupee, now CPO is getting support at 576 and below same could see a test of 572.7 level, And resistance is now likely to be seen at 583.1, a move above could see prices testing 586.9.

Trading Ideas:

CPO trading range for the day is 572.7-586.9.

Crude palm oil prices dropped after the import duty on crude palm oil have been reduced to 15 percent.

Palm oil imports by India fell for a fourth month in August dropped by 16% to 540,633 metric tons in August from a year earlier.

Malaysia’s total palm oil stocks fell 17.29 per cent to 1.46 million tonnes in August against 1.77 million tonnes in the previous month.

Crude palm oil prices in spot market dropped by 18.70 rupees and settled at 579.50 rupees.