CPO on MCX settled down -1.74% at 586.8 on profit booking after prices gained recently following robust Malaysian palm oil export data. Indonesia will set its export tax for crude palm oil (CPO) in February at $18 per tonne, up from $3 per tonne this month, the country's trade ministry said. The tax will be increased as the government's reference export price for crude palm oil is seen rising above a threshold of $800 per tonne, the ministry said in a statement. The government's price reference is set at $815.52 per tonne for next month. An export tax of $18 per tonne is applied whenever the export price is between $800 and $850 per tonne. The rising export tax may encourage planters to sell more of their products to domestic buyers, according to Indonesian Palm Oil Association (GAPKI). China’s imports plunged 24 percent to 4.48 million metric tons in 2016, the lowest since 2005, as benchmark futures surged 25 percent after El Nino squeezed supplies in Indonesia and Malaysia. With production set to recover in the two biggest producers in the second half, prices should fall to levels that attracts Chinese buying. The El Nino between 2015 and early 2016 reduced global palm oil output by 6.8 million tons last year. Technically market is under long liquidation as market has witnessed drop in open interest by -15.21% to settled at 2381 while prices down -10.4 rupees, now CPO is getting support at 583 and below same could see a test of 579.1 level, And resistance is now likely to be seen at 592.9, a move above could see prices testing 598.9.

Trading Ideas:

CPO trading range for the day is 579.1-598.9.

Crude palm oil prices ended with losses on profit booking after prices gained recently following robust Malaysian palm oil export data.

Indonesia will set its export tax for crude palm oil (CPO) in February at $18 per tonne, up from $3 per tonne this month, the country's trade ministry said.

China’s imports plunged 24 percent to 4.48 million metric tons in 2016, the lowest since 2005.

Crude palm oil prices in spot market dropped by 6.60 rupees and settled at 590.30 rupees.