Crude Palm Oil yesterday traded with the negative node and settled -0.39% down at 507.8 amid rising inventory levels, while data showing a continued contraction in manufacturing in China also weighed on prices. Exports remained strong according to latest cargo surveyor data, but sources said rising inventory levels that could surpass 2.2 million tonnes in September -- which would be the highest level for this year -- was weighing on the market. Cargo surveyor Intertek Testing said export shipments rose almost 15 percent during Sept. 1-20 over the same period a month ago, while another cargo surveyor, Societe Generale de Surveillance, reported an almost 13 percent increase from a month ago. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during the September 1-20, augmented by 15% from the same period in August to 9.20 lakh metric tonnes. Palm oil stockpiles reached 2.12 million tons at end-August, a level not seen since last October. Separately, traders tipped Sept. 1-20 palm oil shipments at around 924,000 tons, up around 15% from the Aug. 1-20 period. In yesterday's trading session Crude Palm oil has touched the low of 502.4 after opening at 510, and finally settled at 507.8. For today's session market is looking to take support at 501.8, a break below could see a test of 495.8 and where as resistance is now likely to be seen at 514.4, a move above could see prices testing 521.

Trading Ideas:

CPO trading range for the day is 495.8-521.

CPO dropped amid rising inventory levels and data showing continued contraction in manufacturing in China also weighed

Sources said rising inventory levels that could surpass 2.2 million tonnes in September

Palm oil stockpiles reached 2.12 million tons at end-August, a level not seen since last October.

Crude palm oil prices in spot market dropped by 5.20 rupees and settled at 505.70 rupees.