Commodity Trading Tips for Crude Palm Oil by Kedia Commodity

Crude palm Oil on MCX settled down by -0.37% at 593.1 on profit booking after prices gained on demand hope following robust Malaysia palm oil export data and on supply worries from Malaysia, the world's second biggest oil producer. Malaysia palm oil exports during Jan 1-15 climbed 7% compared to a month earlier on strong demand from Middle East, data showed. Malaysia palm oil exports jumped to 513,762 tons during Jan 1-15 compared to
481,349 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. The Malaysian Palm Oil Board (MPOB) monthly data for December has reconfirmed the supply tightness for Palm oil. Production has declined by 100,000 tons in line with the seasonal trend of production decline. 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. Data published by DowJones citing Intertek, a private surveyor Malaysia's palm oil exports during 1-25 dropped by 5.60% compared to same period a month ago on subdued demand from Middle East. Malaysia palm oil exports slipped to 845,441 tons during Dec 1-25 compared to
895,625 tons for the same period a month ago. Technically market is under long liquidation as market has witnessed drop in open interest by -9.75% to settled at 3960 while prices down -2.2 rupee, now CPO is getting support at 590.9 and below same could see a test of 588.8 level, And resistance is now likely to be seen at 595.4, a move above could see prices testing 597.8.

Trading Ideas:

CPO trading range for the day is 588.8-597.8.

Crude palm oil dropped on profit booking after prices gained on demand hope following robust Malaysia palm oil export data.

Malaysia palm oil exports during Jan 1-15 climbed 7% compared to a month earlier on strong demand from Middle East, data showed.

Malaysia palm oil exports jumped to 513,762 tons during Jan 1-15 compared to 481,349 tons for the same period a month ago.

Crude palm oil prices in spot market dropped by 3.30 rupees and settled at 597.80 rupees.