Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 12 April 2013

Crude-Palm-Oil Crude Palm Oil yesterday traded with the negative node and settled -0.6% down at 462.8 tracking weakness in spot market demand. Robust palm oil export demand and lower-than-expected inventory levels eventually outweighed the bearish USDA data, sending the edible oil higher after two sessions of losses. The Malaysian Palm Oil Board (MPOB) reported an inventory level for March at 2.17 million tonnes, below a poll's consensus of 2.35 million tonnes, as exports rose as much as 10 percent on a monthly basis. Cargo surveyor data showed exports also edged higher for the first 10 days of April from a month ago, raising hopes that stocks could ease further and dip below 2 million tonnes by the end of this month. 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. Malaysian Palm Oil Board is scheduled to release its data on palm oil stocks, output and exports on April 10, which may impact futures movement. Meanwhile, Malaysian palm oil products exports have gone up 2.8 percent in March to 1.36 mn tons compared to the last month, according to the cargo surveyor Intertek Testing Services. In yesterday's trading session Crude Palm oil has touched the low of 460.8 after opening at 465.3, and finally settled at 462.8. For today's session market is looking to take support at 460.2, a break below could see a test of 457.6 and where as resistance is now likely to be seen at 466, a move above could see prices testing 469.2.