Crude palm Oil on MCX settled up by 0.16% at 553 on the back of pickup in demand at the spot market. Indonesia's production and exports of palm oil are expected to decline 10-15 percent this year, Fadhil Hasan, executive director of the Indonesian Palm Oil Association (GAPKI), told. Less output from the world's top palm oil producer could further propel prices of the edible oil, which hit a fouryear high. Hasan did not say why he expected the declines, nor give details of how much he expected output or export volumes to be. According to GAPKI data released earlier this month, Indonesia produced 35.51 million tonnes of the edible oil in 2015. This would put output this year at 30-32 million tonnes. Lower output of palm oil into early next year and tight supplies of rival soybean oil are likely to bolster prices for the tropical product in the short term after they hit a four-year high this week. Higher mandates for biodiesel production in the United States and Indonesia will further squeeze inventories of palm oil, used in products ranging from candy to cosmetics and cooking oil. Malaysia's palm oil products during November 1 to 25 fell 9.6 per cent to 895,625 tonnes compared with 990,939 tonnes during October 1 to 25. Palm output from Indonesia and Malaysia are expected to fall by 10-15% and 9.8%, respectively, this year. Technically market is under short covering as market has witnessed drop in open interest by -7.63% to settled at 5144 while prices up 0.9 rupee, now CPO is getting support at 548.1 and below same could see a test of 543.2 level, And resistance is now likely to be seen at 559.8, a move above could see prices testing 566.6.

Trading Ideas:

CPO trading range for the day is 543.2-566.6.

Crude palm oil prices ended with gains supported on the back of pickup in demand at the spot market.

Indonesia's production and exports of palm oil are expected to decline 10-15 percent this year.

According to GAPKI data released earlier this month, Indonesia produced 35.51 million tonnes of the edible oil in 2015.

Crude palm oil prices in spot market dropped by 0.30 rupees and settled at 554.30 rupees.