Output in Indonesia may drop 10% this year to 30.9 million tons, the first decline in 20 years, due to the impact of El-Nino, Indonesian Palm Oil Association said last month. India & Subcontinent's palm oil imports from Malaysia during first 25 days of the month climbed by 60.26% to 144,175 tons as compared to 89,960 tons in Nov 1-25. Malaysia and Indonesia raised export tax and weak demand. Indonesia raises export tax to $3 per tons in January 2017 as per the trade ministry.

Technically market is under fresh buying as market has witnessed gain in open interest by 3.66% to settled at 5133 while prices up 2.7 rupee, now CPO is getting support at 576.7 and below same could see a test of 572 level, And resistance is now likely to be seen at 584.9, a move above could see prices testing 588.4.