Crude Palm oil yesterday traded with the negative node and settled -0.31% down at 450.3 on sluggish demand in the spot market against adequate stocks position. Palm oil imports are rising since it is trading in sharp discount to soyoil. In the coming weeks that will dampen demand for soyoil and we can see correction in the prices. Market participants will be looking forward to January crop data by industry regulator, the Malaysian Palm Oil Board, due Feb. 13. Stockpiles are tipped to ease a tad from December's all-time high of 2.63 million tons, as export demand has recovered. Export estimates for the first 10 days of February by cargo surveyors are also scheduled to be released Feb. 13. Inventories likely reached 2.60 million tons, a modest 1.1% drop from a month earlier, while overall palm oil output probably fell 15% to 1.51 million tons, in line with seasonally lower yields and as heavy rain slowed harvesting activities. Palm oil prices were mostly higher the past few sessions due to optimism that export demand could go up for the tropical oil used in a wide variety of consumer products ranging from biscuits to chocolates and cooking oil. In yesterday's trading session Crude Palm oil has touched the low of 449.5 after opening at 450.3, and finally settled at 450.3. For today's session market is looking to take support at 449.4, a break below could see a test of 448.4 and where as resistance is now likely to be seen at 451.4, a move above could see prices testing 452.4.

Trading Ideas:

CPO trading range for the day is 448.43-452.43.

Crude palm oil ended lower on sluggish demand in the spot market against adequate stocks position.

Stockpiles are tipped to ease a tad from December's all-time high of 2.63 million tons

Inventories likely reached 2.60 million tons, a modest 1.1% drop from a month earlier.

Crude palm oil prices in spot market dropped by 0.90 rupees and settled at 442.80 rupees.