Crude Palm Oil yesterday traded with the negative node and settled -0.09% down at 535.2 on late profit booking after prices gained on expectations of strong Asian demand and tight supply of competing soyoil. Palm oil stocks in August surged to a 10-month high of 2.1 million tonnes, exceeding market expectations, the Malaysian Palm Oil Board (MPOB) said earlier in the week. While production is expected to be stronger, cargo surveyors have pointed to stronger demand this month. For the first ten days of September, Malaysian palm oil exports jumped 30 percent as the country shipped out more crude to India thanks to a bigger tax free quota of the grade.  India's palm oil imports in the new marketing year will rise 7.9 percent to 7.5 million tonnes as the world's top edible oil buyer struggles to meet demand due to faltering local oilseed output. The palm oil's widening discount to soyoil limit prices from falling as consumers shift their purchases to the tropical oil produced in Indonesia and Malaysia. Imports of crude palm oil will account for a bigger share of India's cooking oil imports, with shipments tipped to reach 6.3 million tons in 2012-13, up 17% on year. In yesterday's trading session Crude Palm oil has touched the low of 535 after opening at 538.3, and finally settled at 535.2. For today's session market is looking to take support at 533.8, a break below could see a test of 532.5 and where as resistance is now likely to be seen at 537.7, a move above could see prices testing 540.3.

Trading Ideas:

CPO trading range for the day is 532.47-540.27.

Crude Palm oil dropped on late profit booking after prices gained on expectations of strong Asian demand

Palm oil stocks in August surged to a 10-month high of 2.1 million tonnes, exceeding market expectations

Production is expected to be stronger, cargo surveyors have pointed to stronger demand this month

Crude palm oil prices in spot market dropped by 0.10 rupees and settled at 534.60 rupees.