Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 2 May 2013

Crude-Palm-Oil Crude Palm Oil yesterday traded with the negative node and settled -0.5% down at 457.8 tracking weakness in spot demand amid falling exports and investor caution ahead of a holiday. Malaysian exports of palm oil products dropped 4.3 percent to 1,305,120 tonnes in April from a month ago, cargo surveyor Intertek Testing Services said. Trading was subdued as investors avoided taking positions ahead of the Labour Day holiday, with the market shifting its focus to Malaysia's palm stocks level in April. With exports slowing compared to a month ago, investors are now turning their hopes to near-stagnant production to help cut stockpiles in Malaysia. Inventory at the world's second-largest producer of the edible oil stood at 2.17 million tonnes in March, down from February's 2.43 million tonnes. Export demand may take a further hit as Indonesia's move to slash its crude palm oil export tax to 9 percent in May from April's 10.5 percent could hurt Malaysia's price competitiveness. Meanwhile, palm oil exports from Malaysia fell 7.5% to 1.07 mn tons in the first 25 days of March against the same period of last month, according to surveyor Intertek. Shipments had been 11 percent higher in the first 20 days of March. Palm oil stock-piles in Malaysia were 2.44 mn tons in February, stated the Intertek. In yesterday's trading session Crude Palm oil has touched the low of 457 after opening at 461.5, and finally settled at 457.8. For today's session market is looking to take support at 455.8, a break below could see a test of 453.9 and where as resistance is now likely to be seen at 460.9, a move above could see prices testing 464.1.