Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Crude-Palm-OilCPO settled up 1% at 554.6 due to a firm global trend on concerns that dry weather in Brazil may damage soybean crop in the world's biggest exporter, trimming global cooking oil inventories. However, sluggish demand in the spot market and ample stocks availability capped the gains in crude palm oil prices to some extent. In Malaysia palm oil production in the January and February month slows seasonally as the tress goes on rest from December which will result to lower yields.  As per latest release from Cargo Surveyor Intertek Agri Services, Malaysia's palm oil exports during January stood at 1.28 million metric tonnes, down 11% over the same period in January,2013 . The country palm oil imports from Malaysia jumped 3.5% to 30,743 tons in Jan 1-25 compared to 290,430 tons for the same period month ago, data from Intertek showed. India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier, data release from the Solvent Extractors Association (SEA) of India. Malaysia, the world's No.2 palm oil producer, has kept its crude palm oil export tax for February unchanged at 5 percent, a government circular showed. The decision could shift demand in India, the world's leading importer of vegetable oils, to crude palm oil (CPO), benefiting Malaysian exporters as the country charges a lower duty on overseas CPO sales than rival producer Indonesia. Technically market is under fresh buying as market has witnessed gain in open interest by 8.1% to settled at 1628 while prices up 5.5 rupee, now CPO is getting support at 552 and below same could see a test of 549.4 level, And resistance is now likely to be seen at 556.2, a move above could see prices testing 557.8.

Trading Ideas:

CPO trading range for the day is 549.4-557.8.

Crude palm oil gained due to a firm global trend on concerns that dry weather in Brazil may damage soybean crop.

However, sluggish demand in the spot market and ample stocks availability capped the gains in crude palm oil prices.

Malaysia palm oil production in the January and February month slows seasonally as the tress goes on rest from December.

Crude palm oil prices in spot market gained by 4.80 and settled at 555.20 rupees.