Crude palm Oil on MCX settled up by 0.88% at 575.4 tracking firmness in spot demand despite of expectation of higher supply. Malaysia palm oil exports during Jan 1-25 rose 9% compared to a month earlier on strong demand from Middle East, data showed. Malaysia palm oil exports climbed to 924,282 tons during Jan 1-25 compared to 845,441 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Middle East's palm oil import from Malaysia during Jan 1-25 spurted by 99.71% to 85,976 tons as compared to 43,050 tons in same period a month ago. Palm oil production in Indonesia is seen rising to 32-33 million tons in 2017 from 28.5-30 million tons in 2016 as per GAPKI. Malaysia palm oil production forecast to rise 12% to 19.4 million tons in 2017 from 17.32 million tons last year, as per MPOB. According to MPOB, Palm oil stockpiles in Malaysia, the world's second largest producer, rose 0.2% to 1.67 million tons in Dec compared to same period a month ago. Meanwhile, Indonesia hiked its export taxes on CPO to $18 tons for February month from $3 per ton in previous month. 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. Technically market is under short covering as market has witnessed drop in open interest by -1.85% to settled at 3919 while prices up 5 rupees, now CPO is getting support at 569.4 and below same could see a test of 563.5 level, And resistance is now likely to be seen at 579.1, a move above could see prices testing 582.9.

Trading Ideas:

CPO trading range for the day is 563.5-582.9.

Crude palm oil prices ended with gains tracking firmness in spot demand despite of expectation of higher supply.

Malaysia palm oil exports during Jan 1-25 rose 9% compared to a month earlier on strong demand from Middle East.

Palm oil production in Indonesia is seen rising to 32-33 million tons in 2017 from 28.5-30 million tons in 2016 as per GAPKI.

Crude palm oil prices in spot market dropped by 1.70 rupees and settled at 585.20 rupees.