Crude palm Oil on MCX settled down by -1.21% at 571 tracking weakness in spot demand on profit booking. However, sharp fall in the prices will be cushioned by supply worries next week. Malaysia palm oil exports during Feb 1-10 fell 3% compared to a month earlier on weak demand from Middle East, data showed. Malaysia palm oil exports fell to 340,947 tons during Feb 1-10 compared to 351,907 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Indonesia Palm and kernel production fell 3% to 34.5 million tons in 2016 from a year earlier, Indonesian Palm Oil Association GAPKI, says in a statement. CPO output dropped by 3% to 31.5 million tons in 2016 on yearly basis, Gapki said. 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. As rain returns, production in the second half of this year will recover strongly with double-digit growth each month, said Ling, who has 40 years experience in the plantation industry. Technically market is under fresh selling as market has witnessed gain in open interest by 4.85% to settled at 3116 while prices down -7 rupees, now CPO is getting support at 568.9 and below same could see a test of 566.9 level, And resistance is now likely to be seen at 574.4, a move above could see prices testing 577.9.

Trading Ideas:

# CPO trading range for the day is 566.9-577.9.

# Crude palm oil ended with losses tracking weakness in spot demand on profit booking.

# Malaysia palm oil exports during Feb 1-10 fell 3% compared to a month earlier on weak demand from Middle East, data showed.

# Indonesia Palm and kernel production fell 3% to 34.5 million tons in 2016 from a year earlier.

Crude palm oil prices in spot market dropped by 5.90 rupees and settled at 577.80 rupees.