Crude Palm Oil yesterday traded with the negative node and settled -0.54% down at 536 on expectations of higher production this month could lead to a stock build up. While production is expected to be stronger, cargo surveyors have pointed to stronger demand this month. For the first ten days of September, Malaysian palm oil exports jumped more than 30 percent as the country shipped out more crude to India thanks to a bigger tax free quota of the grade. India's palm oil imports in the new marketing year will rise 7.9 percent to 7.5 million tonnes as the world's top edible oil buyer struggles to meet demand due to faltering local oilseed output. Indonesia's palm oil exports will likely be little changed this year from 17.6 million metric tons in 2011, with weak economic growth in major vegetable-oil-consuming economies curbing commodity consumption. The association, known as Gapki, lowered its forecast from 18 million tons to reflect reduced shipments--7.9 million tons--during the January-June period. In yesterday's trading session Crude Palm oil has touched the low of 535 after opening at 538.1, and finally settled at 536. For today's session market is looking to take support at 533.9, a break below could see a test of 531.9 and where as resistance is now likely to be seen at 539.1, a move above could see prices testing 542.3.

Trading Ideas:

CPO trading range for the day is 531.87-542.27.

Crude palm oil dropped on expectations of higher production this month could lead to a stock build up.

Production seen up 10 percent, stocks could surge more than 2.2 mln tonnes

Malaysian palm oil exports jumped more than 30 percent as the country shipped out more crude to India

Crude palm oil prices in spot market gained by 0.20 rupees and settled at 534.70 rupees.