Crude Palm oil yesterday traded with the positive node and settled 1.1% up at 433.1 tracking firm spot demand amid firm overseas market but gains were capped by persistently weak exports and record high stocks in the world's second largest producer of the edible oil. Malaysia's crude palm-oil output may reach 18.9 million metric tons in 2013, according to the director general of state-linked Malaysian Palm Oil Board. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during January 1-15 declined by 21% from the same period in December to 5.70 lakh metric tonnes. Exports of Malaysian palm oil products for Jan. 1 to 15 fell 20.7 percent to 570,510 tonnes from 719,817 tonnes shipped during Dec. 1 to 15, cargo surveyor Intertek Testing Services said. Exports to Europe also took a hit as buyers refrain from purchasing palm oil that solidifies during the winter season. Malaysia will set its crude palm oil export tax for February at zero percent, unchanged from January, a government circular showed on Tuesday, and traders hope that the zero percent tax will help clear record-high palm oil stocks which stood at 2.63 million tonnes in December. In yesterday's trading session Crude Palm oil has touched the low of 428.9 after opening at 428.9, and finally settled at 433.1. For today's session market is looking to take support at 429.8, a break below could see a test of 426.6 and where as resistance is now likely to be seen at 435.4, a move above could see prices testing 437.8.

Trading Ideas:

CPO trading range for the day is 426.57-437.77.

Crude palm oil gains tracking firm spot demand but gains were capped by persistently weak exports and record high stocks

Malaysia's palm oil exports during January 1-15 declined by 21% from same period in December to 5.70 lakh metric tonnes

Exports of Malaysian palm oil products for Jan. 1 to 15 fell 20.7% to 570,510 tonnes from 719,817 tonnes shipped during Dec. 1 to 15

Crude palm oil prices in spot market gained by 0.10 rupees and settled at 428.10 rupees.