CPO settled down -0.85% at 558.2 tracking weakness in spot demand amid weak exports. Exports of Malaysian palm oil products for Dec. 1-10 plunged nearly 20 percent compared with the same period last month, cargo surveyor Intertek Testing Services showed, as demand to top consumers India and China weakened. Palm oil shipments to Europe also fell steeply as buyers cut back purchases of the tropical oil that solidifies in winter. Industry regulator Malaysian Palm Oil Board (MPOB) will release official data on Malaysia's November stocks, production and exports. Market participants expect palm inventories to rise due to weaker export demand last month. Malaysia's Metrological Department on Tuesday issued warnings of thunderstorms and heavy rain over the palm-growing states of Perak and Pahang that could cause floods in low-lying areas. Floods disrupt harvesting and transportation of fresh fruit, and could damage the quality of palm oil. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during November 1-25 stood at 1.23 million metric tonnes, unchanged from the October. As per the release from Malaysian Palm Oil Board (MPOB), the total stocks of palm oil in Malaysia are likely to reach 1.87 million tonnes by the end of 2013 against 2.63 million in the previous year. Technically market is under long liquidation as market has witnessed drop in open interest by -1.79% to settled at 2517 while prices down -4.8 rupee, now CPO is getting support at 554.5 and below same could see a test of 550.7 level, And resistance is now likely to be seen at 563.8, a move above could see prices testing 569.3.

Trading Ideas:

CPO trading range for the day is 551-569.6.

Crude palm oil ended with losses tracking weakness in spot demand amid weak exports.

Exports of Malaysian palm oil products for Dec. 1-10 plunged nearly 20 percent compared with the same period last month

Palm oil shipments to Europe also fell steeply as buyers cut back purchases of the tropical oil that solidifies in winter.

Crude palm oil prices in spot market dropped by 0.90 and settled at 558.20 rupees.