Crude Palm Oil yesterday traded with the positive node and settled 2.66% up at 429.1 tracking firm Malaysian palm oil as a government plan to cut export tax on crude palm oil offset record stockpiles and weak exports. Malaysia has approved a plan to slash export taxes from the current level of 23 percent per tonne and will discuss the size of the cut on Friday, a government source said. Palm oil stocks in September hit an all-time high, thanks to record production, but prices are heading for the first weekly gain after three weeks of losses, suggesting that the sharp rise in inventory could already have been factored in. Malaysia's palm oil stocks in September surged 17.4 percent from a month ago to a record 2.48 million tonnes, the Malaysian Palm Oil Board said after the midday break. The rise in September stocks exceeded market expectations of 2.46 million tonnes and could weigh on the market later when it reopens. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports in the first 10 days of October decreased by 1% from the same period in September to 4.48 lakh metric tonnes. In yesterday's trading session Crude Palm oil has touched the low of 419.2 after opening at 421, and finally settled at 429.1. For today's session market is looking to take support at 421.8, a break below could see a test of 414.6 and where as resistance is now likely to be seen at 433.7, a move above could see prices testing 438.4.

Trading Ideas:

CPO trading range for the day is 414.57-438.37.

Crude palm oil ended with gains tracking firm Malaysian palm oil as a government plan to cut export tax

Malaysia has approved a plan to slash export taxes from the current level of 23 percent per tonne

Malaysia's palm oil stocks in September surged 17.4 percent from a month ago to a record 2.48 million tonnes

Crude palm oil prices in spot market gained by 9.40 rupees and settled at 420.70 rupees.