Commodity Trading Tips for Crude palm Oil by Kedia Commodity
CPO on MCX settled up 0.16% at 516.8 amid higher export data from Malaysia spurted demand hope. Malaysia palm oil exports during Apr 1-20 jumped 5% as compared to same period a month ago on higher demand from European Union, China, Japan, India Egypt and South Africa, data showed. Malaysia palm oil exports jumped to 719,175 tons during Apr 1-20 compared to 686,741 tons for the same period a month ago, DowJones reported citing data from SGS, a private surveyor. India's palm oil imports from Malaysia during Apr 1-20 rose by 16.07% to 94,600 tons as compared to 81,500 tons imported during Mar 1-20. The area under palm plantations is likely to increase significantly in the coming years, with the government's relaxation in norms for subsidy and foreign direct investment (FDI), to promote sourcing of vegetable oil from domestic sources. Consequently, the actual plantations have never achieved more than half the area targeted by the government. Automatically, therefore, the release of subsidy never exceeded half the allocation under this category. Dependence on imported vegetable oils (largely crude palm oil) continues to ben 55-60 per cent, on weak domestic investment in palm plantings and harvesting. Moreover, government lowered the base import price of CPO by $22 to $725 per tonnes for 2nd half of April, their 5th consecutive fortnightly decline in base import price. Technically market is under short covering as market has witnessed drop in open interest by -20.7% to settled at 3759 while prices up 0.8 rupees, now CPO is getting support at 512.6 and below same could see a test of 508.5 level, And resistance is now likely to be seen at 523.2, a move above could see prices testing 529.7.
CPO trading range for the day is 508.5-529.7.
Crude palm oil ended with gains amid higher export data from Malaysia spurted demand hope
India's palm oil imports from Malaysia during Apr 1-20 rose by 16.07% to 94,600 tons as compared to 81,500 tons imported during Mar 1-20.
Malaysia palm oil exports during Apr 1-20 jumped 5% as compared to same period a month ago on higher demand.
Crude palm oil prices in spot market gained by 0.50 rupees and settled at 519.60 rupees.