Crude palm Oil on MCX settled up by 0.51% at 591.5 on increasing demand. However upside seen limited on the 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 tonnes in December from 3.31 million tonnes 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 tonnes from 17.4 million tonnes in 2016 while exports may rise 11.2% to 17.85 million tonnes from 16.05 million tonnes in 2016, Malaysian Palm Oil Board said. Malaysia palm oil exports during Jan 1-20 climbed 18% compared to a month earlier on strong demand from India and Subcontinent and the Middle East, data showed. Malaysia palm oil exports jumped to 739,367 tonnes during Jan 1-20 compared to 629,043 tonnes for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. India's palm oil imports from Malaysia during Jan 1-20 jumped by 10.08% to 110,800 tonnes as compared to 100,650 tonnes imported during Dec 1-20. Technically market is under short covering as market has witnessed drop in open interest by -2.66% to settled at 3442 while prices up 3 rupee, now CPO is getting support at 588 and below same could see a test of 584.6 level, And resistance is now likely to be seen at 593.8, a move above could see prices testing 596.2.

Trading Ideas:

# CPO trading range for the day is 584.6-596.2.

# Crude palm oil prices ended with gains on increasing demand.

# However upside seen limited on the 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.

Crude palm oil prices in spot market dropped by 1.00 rupees and settled at 594.60 rupees.