Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Crude-OilCrude Palm Oil yesterday traded with the positive node and settled 0.04% up at 460.6 as investors remaining cautious after a recent rout in commodities and ahead of export data. Palm oil traders are now waiting for further export numbers as stocks of the edible oil could ease further on higher shipments and weak production. Inventory levels fell to 2.17 million tonnes in March, the lowest in seven months. Market participant will be hoping for some improvement in Malaysian palm oil exports for the first 20 days of the month. Shipments for the first half of April dropped 4 percent from a month ago, according to cargo surveyor Intertek Testing Services. 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. Rising Malaysian palm oil exports are expected to support palm oil prices to some extent. In yesterday's trading session Crude Palm oil has touched the low of 460.1 after opening at 463.1, and finally settled at 460.6. For today's session market is looking to take support at 459, a break below could see a test of 457.3 and where as resistance is now likely to be seen at 463.4, a move above could see prices testing 466.1.

Trading Ideas:

CPO trading range for the day is 457.33-466.13.

Crude Palm oil settled flat as investors remaining cautious after a recent rout in commodities and ahead of export data.

Inventory levels fell to 2.17 million tonnes in March, the lowest in seven months.

Market participant will be hoping for some improvement in Malaysian palm oil exports for the first 20 days of the month

Crude palm oil prices in spot market gained by Rs 1.50 and settled at 461.90 rupees.