CPO on MCX settled down -0.78% at 588.5 on expectation of higher supply from Malaysia and Indonesia. Indonesia's crude palm oil (CPO) output likely fell slightly in December, ending a seven-month run of gains, a survey showed. CPO production in the South-East Asian nation likely eased to 3.22 million tons in December from 3.31 million tons in November, according to the median estimate in a survey of three industry associations and a state palm research firm. Malaysia's palm oil output may rise by 12% this year to 19.4 million tons from 17.4 million tons in 2016 while exports may rise 11.2% to 17.85 million tons from 16.05 million tons in 2016, Malaysian Palm Oil Board said. 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. Data published by DowJones citing Intertek, a private surveyor Malaysia's palm oil exports during 1-25 dropped by 5.60% compared to same period a month ago on subdued demand from Middle East. Malaysia palm oil exports slipped to 845,441 tons during Dec 1-25 compared to 895,625 tons for the same period a month ago. Technically market is under long liquidation as market has witnessed drop in open interest by -10.71% to settled at 3536 while prices down -4.6 rupee, now CPO is getting support at 584.9 and below same could see a test of 581.3 level, And resistance is now likely to be seen at 592.8, a move above could see prices testing 597.1.

Trading Ideas:

CPO trading range for the day is 581.3-597.1.

Crude palm oil dropped on expectation of higher supply from Malaysia and Indonesia.

Indonesia's crude palm oil (CPO) output likely fell slightly in December, ending a seven-month run of gains, a survey showed.

Malaysia's 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 2.20 rupees and settled at 595.60 rupees.