Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 11 April 2013

Crude-Palm-Oil Crude Palm Oil yesterday traded with the positive node and settled 0.06% up at 465.9 tracking gains in spot and overseas prices supported by rising exports. Exports of Malaysian palm oil products for April 1 to 10 inched up 3.5 percent to 456,440 tonnes, compared with 441,025 tonnes shipped during the same period last month, cargo surveyor Intertek Testing Services said. But investors refrained from taking risky bets ahead of the Malaysian stocks data. The Malaysian Palm Oil Board (MPOB) reported a steep 10.9 percent drop in stocks to 2.17 million tonnes, exceeding market expectations of a 3.8 percent drop. Traders said the steep fall in Malaysian palm inventory level might support prices in the near term. Stocks fell to 2.17 million tonnes, the lowest since last September, thanks to a 10 percent increase in exports from a month ago. Malaysia Palm oil stocks is likely to have dropped 3.8 percent to 2.35 mn tons, the third monthly decline. Stocks had hit a high a record 2.63 mn tons in December 2012.Production most likely fell 1.2 percent from a month ago to 1.28 million tonnes, as crude palm oil yields remained in a seasonal low cycle, although the decline is significantly smaller than a near one-fifth drop seen in February. In yesterday's trading session Crude Palm oil has touched the low of 463.3 after opening at 464.7, and finally settled at 465.9. For today's session market is looking to take support at 462.3, a break below could see a test of 458.6 and where as resistance is now likely to be seen at 470.6, a move above could see prices testing 475.2.