Commodity Trading Tips for Crude palm oil by KediaCommodity

Ajay Kumar Kedia 30 December 2013

CPO settled flat tracking dull demand in spot demand and overseas prices on reports of lower palm oil exports this month. The sentiment in the physical market remained dull in the absence of demand. Higher selling pressure in producing centres for indigenous oils and improved arrivals of oilseeds kept the market under check. Sources said that despite local refineries slashing their rates for palmolein there were no fresh buyers. Palm oil production in Malaysia might be hampered as a second wave of flood may hit Pahang by the end of December according to Malaysia Meteorology Department's warning. Malaysia Palm Oil Board data shows the second largest matured oil palm planted area in Peninsular Malaysia is in Pahang and the possible flood may disrupt harvesting and transportation of fresh fruits in that area. As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during December 1-25 stood at 1.14 million metric tonnes, down 7.13% from the November. Malaysia, the world's No. 2 palm oil producer, has kept its crude palm oil export tax for January unchanged at 5 percent, a government circular showed. The Southeast Asian country calculated a reference price of 2,549.98 ringgit ($789) per tonne for crude palm oil for January, effectively keeping the export duty at 5 percent. Technically market is under fresh buying as market has witnessed gain in open interest by 2.01% to settled at 3406 while prices up 0.4 rupee, now CPO is getting support at 546.1 and below same could see a test of 545.1 level, And resistance is now likely to be seen at 548.3, a move above could see prices testing 549.5.