Commodity Trading Tips for Crude palm Oil by Kedia Commodity

Ajay Kumar Kedia 14 June 2013

Crude Palm oil CPO yesterday settled down -0.32% at 495.2 as investors remained cautious ahead of upcoming export figures that could give more pointers to demand trends in the first half of the month. Also helping to trim losses were palm oil stocks in Malaysia, the world's No. 2 producer of the edible oil that fell to their lowest in nearly a year, at 1.82 million tonnes by the end of May. India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April, a leading trade body said, pushing total purchases of the tropical oil up for the first time since January on lower prices and tight domestic supplies. The jump in refined palm oil purchases will raise the clamour for increasing import duties to protect local oilseed growers and refiners against cheaper supplies from major exporters Indonesia and Malaysia. But the Indian government is yet to pay any heed as inflation has only just reached comfortable levels. Total palm oil imports in May stood at 771,869 tonnes, up 54.7 percent from the previous month, the monthly data released by the Mumbai-based trade body showed. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during June 1-10 increased by 10.30% from the same period in May to 4.19 lakh metric tonnes. Technically market is under long liquidation as market has witnessed drop in open interest by -12.21% to settled at 2028 while prices down -1.6 rupee, now CPO is getting support at 492.2 and below same could see a test of
489.3 level, And resistance is now likely to be seen at 499.9, a move above could see prices testing 504.7.