CPO settled down -0.93% at 543 as forecasts of bumper supplies from the world's top palm producers continued to weigh on investor sentiment, while weak competing overseas markets put pressure on prices. Indonesia and Malaysia -- which together account for nearly all of the world's palm oil supply -- expect their palm production to climb in 2014, fanning fears that their supply may outstrip food and fuel demand. Indonesia said its 2013 palm oil output likely grew to 24.4 million tonnes and could rise further to 28 million tonnes in 2014, while No. 2 producer Malaysia expects to hit a record 19.4 million tonnes in 2013 and inch up to 19.5 million tonnes this year. Prospects of higher production of competing oilseeds have dragged on U.S. and China soy markets tracked by palm oil. Larger soybean crops would mean more volumes to be crushed into soyoil, adding to global stockpiles. Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said. Technically market is under fresh selling as market has witnessed gain in open interest by 0.61% to settled at 2455 while prices down -5.1 rupee, now CPO is getting support at 541.7 and below same could see a test of 540.3 level, And resistance is now likely to be seen at 545.5, a move above could see prices testing 547.9.

Trading Ideas:

CPO trading range for the day is 540.3-547.9.

Crude palm oil dropped as forecasts of bumper supplies from the world's top palm producers continued to weigh on investor sentiment

Indonesia and Malaysia expect their palm production to climb in 2014, fanning fears that their supply may outstrip food and fuel demand

Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes

Crude palm oil prices in spot market dropped by 5.20 and settled at 539.80 rupees.