Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 20 May 2013

Crude-Palm-Oil Crude Palm Oil yesterday traded with the negative node and settled -0.13% down at 470.7 tracking weakness in spot demand though price seen supportive as investors pinned their hopes on a recovery in exports in the second half of May to help ease stocks. Malaysian palm oil shipments for the first half of the month fell as much as 8 percent, cargo surveyor data showed, but the decline was smaller than the drop of nearly a fifth in the first ten days, suggesting that export demand could be recovering. Stronger exports could eat into stocks that dipped below the psychological mark of 2 million tonnes in April, to 1.93 million tonnes, providing support for prices that have gained 0.7 percent this week. Traders are looking ahead to the first 20 days' exports data, due on Monday, for a better indication of the demand trend. Malaysia, the world's second largest producer, announced this week it would set its crude palm oil export tax for June at 4.5 percent, unchanged since March. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during May 1-10 declined by 17% from the same period in April to 3.80 lakh metric tonnes. As per latest release from Malaysian Palm Oil Board , Malaysia's April crude palm oil output increased by 3.10% from March to 1.37 million metric tonnes. While April exports declined by 5.60% to 1.45 million metric tonnes. In yesterday's trading session Crude Palm oil has touched the low of 468 after opening at 470.5, and finally settled at 470.7. For today's session market is looking to take support at 467.8, a break below could see a test of 465 and where as resistance is now likely to be seen at 473.7, a move above could see prices testing 476.8.