CPO settled up 0.3% at 541.4 on some short covering amid firm spot demand despite of prices dropped in overseas due to sluggish demand as worries that rising vegetable oil supplies may outstrip global demand curbed buying sentiment and prompted some investors to liquidate positions. Cargo surveyors last week reported that Malaysian palm oil shipments fell 1-3 percent for the full month of December, partly due to weaker purchases of crude palm oil. Malaysian palm oil stocks in December likely eased for the first time in six months after monsoon rains and floods dented production in some parts of the Southeast Asian country, although weaker export demand stemmed the fall. Sluggish export demand likely prevented stockpiles from shrinking much, the poll respondents said. Exports were seen falling 2.7 percent from November to 1.48 million tonnes, according to the survey. Malaysian imports of palm oil products likely stood at 14,859 tonnes in December. Exports of Malaysian palm oil products for December fell 3.3 percent to 1,423,644 tonnes from 1,472,694 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said. Technically market is under short covering as market has witnessed drop in open interest by -14.93% to settled at 2109 while prices up 1.6 rupee, now CPO is getting support at 539 and below same could see a test of 536.7 level, And resistance is now likely to be seen at 542.8, a move above could see prices testing 544.3.

Trading Ideas:

CPO trading range for the day is 536.7-544.3.

CPO settled up on some short covering amid firm spot demand despite of prices dropped in overseas due to sluggish demand

Malaysian imports of palm oil products likely stood at 14,859 tonnes in December.

Exports were seen falling 2.7 percent from November to 1.48 million tonnes, according to the survey.

Crude palm oil prices in spot market gained by 3.10 and settled at 536.70 rupees.