Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Crude-Palm-OilCrude Palm Oil yesterday traded with the positive node and settled 1% up at 563 amid firm spot demand chasing gains in the soybean oil market after reopening from a long weekend break and getting support from exports. On the weather front, plantation owners are watching out for a possibility of El Nino returning to Southeast Asia, bringing hot and dry weather that could damage palm oil production for key producers Malaysia and Indonesia. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during the August 1-20, augmented by 6% from the same period in July to 8.09 lakh metric tonnes. Malaysian palm oil Production has risen consistently since March 2012 and expected to go as high as 1.9 mn tn in September. A smaller supply of soybean oil could shift more vegetable oil demand to the cheaper palm oil, which is trading at a hefty discount of above $200. In yesterday's trading session Crude Palm oil has touched the low of 559.9 after opening at 559.9, and finally settled at 563. For today's session market is looking to take support at 559.6, a break below could see a test of 556.2 and where as resistance is now likely to be seen at 566.7, a move above could see prices testing 570.4.

Trading Ideas:

CPO trading range for the day is 556.2-570.4.

Crude palm oil rose amid firm spot demand chasing gains in the soybean oil market

Plantation owners are watching out for a possibility of El Nino returning to Southeast Asia, bringing hot and dry weather

Production has risen consistently since March 2012 and expected to go as high as 1.9 mn tn in September.

Crude palm oil prices in spot market gained by 8.30 rupees and settled at 562.10 rupees.