Commodity Trading Tips for Crude Palm Oil by Kedia Commodity

Crude palm Oil on MCX settled up by 0.56% at 534.2 on short covering after prices dropped amid weak spot market on sluggish demand. Malaysia palm oil exports during Feb 1-28 fell by 14.2% compared to a month earlier on subdued demand from China, European Union, India & Subcontinent and Middle East, data showed. Malaysia's palm oil exports India during Feb 1-28 slumped by 18.11% to 181,860 tons as compared to 222,100 tons imported during Jan 1-31. However, investors kept close watch on Palm and Lauric Oil Prices Outlook Conference & Exhibition (POC). World palm oil output is forecast to climb 11% to 65 million tonnes this year from 58.3 mln tonnes a year ago as near-perfect weather boosts yields, a senior industry official said. Palm oil imports fell for the third consecutive month by 11.56 per cent to 608,762 tonnes in January, on account of good domestic oilseeds production and better availability of edible oils, industry body Solvent Extractors Association (SEA) said. India, the world’s leading vegetable oil buyer, had imported 688,393 tonnes palm oil in January 2015. The country’s total vegetable oil imports fell by 19 per cent to 1.24 million tonnes (mt) in January this year from 1.26 mt in the year-ago period. Technically market is under fresh buying as market has witnessed gain in open interest by 0.14% to settled at 4409 while prices up 3 rupees, now CPO is getting support at 528.8 and below same could see a test of 523.5 level, And resistance is now likely to be seen at 538.7, a move above could see prices testing 543.3.

Trading Ideas:

CPO trading range for the day is 523.5-543.3.

Crude palm oil prices ended with gains on short covering after prices dropped amid weak spot market on sluggish demand.

Malaysia palm oil exports during Feb 1-28 fell by 14.2% compared to a month earlier on subdued demand.

World palm oil output is forecast to climb 11% to 65 million tonnes this year from 58.3 mln tonnes a year ago.

Crude palm oil prices in spot market gained by 0.10 rupees and settled at 548.90 rupees.