CPO settled down -0.18% at 549.9 amid profit booking and weak spot demand after prices gained earlier as prices rose in overseas as a decline in the Malaysian currency improved prospects for exports from the world's second-largest producer. Indonesia, the world's top palm oil producer, kept its export tax for crude palm oil unchanged at 12 percent for January, said an official at the industry ministry. Concerns that monsoon floods in key palm-growing states in Malaysia would hamper production also lifted prices of the tropical oil. Malaysia's Meteorological Department warned that thunderstorms and heavy rains are expected over the states of Johor and Sarawak, and potentially cause flash floods in low-lying areas. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during December 1-15 declined by 14.10% from the same period in November to 6.40 lakh metric tonnes. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during November 1-25 stood at 1.23 million metric tonnes, unchanged from the October. As per the release from Malaysian Palm Oil Board (MPOB), the total stocks of palm oil in Malaysia are likely to reach 1.87 million tonnes by the end of 2013 against 2.63 million in the previous year. This is mainly due to restricted buying by international buyer. Technically market is under long liquidation as market has witnessed drop in open interest by -2.69% to settled at 1449 while prices down -1 rupee, now CPO is getting support at 548.2 and below same could see a test of 546.4 level, And resistance is now likely to be seen at 552.6, a move above could see prices testing 555.2.

Trading Ideas:

CPO trading range for the day is 546.3-555.1.

CPO dropped amid profit booking and weak spot demand after prices gained earlier as prices rose in overseas

Indonesia Keeps Crude Palm Oil Export Tax Unchanged for Jan

Concerns over supply disruption due to monsoon floods also buoyed prices.

Crude palm oil prices in spot market gained by 1.70 and settled at 547.60 rupees.