Crude palm Oil on MCX settled up by 0.08% at 595.3 amid supply worries from Malaysia and on strong Malaysian palm oil export data for Dec 1-15. Palm oil shipments rose 12% from 464,582 tons in Dec. 1-15 period, according to Societe Generale de Surveillance. Malaysia Feb. Crude Palm Oil Export Tax raised to 7.5%. The MPOB monthly data for December has reconfirmed the supply tightness for Palm oil. Production has declined by 0.10 mn in line with the seasonal trend of production decline. Lower exports have offset the lower production which led to a steady stock. Stock continues to be on a five year low keeping the supply tightness story intact. Indonesian palm oil exports probably rose to the highest level in 13 months in November as some buyers replenished stockpiles. Exports of palm and kernels oils increased 5.4% from October to 2.54 million tonnes. India & Subcontinent's palm oil imports from Malaysia during first 25 days of the month climbed by 60.26% to 144,175 tons as compared to 89,960 tons in Nov 1-25. Malaysia and Indonesia raised export tax and weak demand. Indonesia raises export tax to $3 per tons in January 2017 as per the trade ministry. Technically market is under short covering as market has witnessed drop in open interest by -7.01% to settled at 4388 while prices up 0.5 rupee, now CPO is getting support at
593.5 and below same could see a test of 591.7 level, And resistance is now likely to be seen at 597.2, a move above could see prices testing 599.1.

Trading Ideas:

CPO trading range for the day is 591.7-599.1.

Crude palm oil prices ended with gains amid supply worries from Malaysia and on strong Malaysian palm oil export data for Dec 1-15.

Stock continues to be on a five year low keeping the supply tightness story intact.

As per MPOB Palm oil output may rise by 12 % this year to 19.4 million tons from 17.4 million tons in 2016.

Crude palm oil prices in spot market dropped by 0.90 rupees and settled at 601.10 rupees.