Crude Palm oil yesterday traded with the positive node and settled 0.29% up at 518.7 as investors covered shorts and expectations of lower production growth in January supported bullish sentiment. Palm oil is down 6% so far this year. It may fall further in coming weeks as Malaysia's palm oil exports may continue to decline in February due the Malaysian government's delay in issuing tax-free export quotas. Shipment data by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. showed sharp declines in January exports, raising the likelihood that end-month stocks will remain above 2 million tons. End-December stocks totaled 2.04 million tons, data from the Malaysian Palm Oil Board showed. Intertek pegged January outbound sales at 1.32 million tons, a decline of 11% from December. SGS said January shipments fell 13% to 1.29 million tons. Both cited reduced orders from major vegoil consumers China and India as well as the European Union. In yesterday's trading session Crude Palm oil has touched the low of 517.6 after opening at 519.3, and finally settled at 518.7. For today's session market is looking to take support at 516.9, a break below could see a test of 515.2 and where as resistance is now likely to be seen at 521.1, a move above could see prices testing 523.6.

Trading Ideas:

Crude Palm Oil trading range is 515.2-523.6.

Crude palm oil gained as investors covered shorts on expectations of lower production growth in January

Data by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. showed sharp declines in January exports

Both cited reduced orders from major vegoil consumers China and India as well as the European Union

Crude palm oil prices in spot market gained by 2.50 rupees and settled at 514.90 rupees.