Chilly prices witnessed meek gains while bouncing from multi year lows. Rs6,150 acts as the key level for the prices to stage a comeback rally.
Jeera positioned remarkable gains breaching the Rs14,300-14,500 resistance zone. Pepper extended its weak tone albeit at a slower pace but managed to stick its neck above Rs29,000.
BMD CPO rose to a two-week high in the yester session as investors covered short positions amid broad gains in Chicago soy oil and improving sentiment over a debt restructuring deal in Greece.
However, as overnight developments remained muted following lack of cohesive resolution to the nagging Greece problem, BMD is currently trading lower by MYR17 at MYR3,138.
Earlier, forecast by ‘Oil World’ for higher Chinese oilseed and palm oil imports to make up for declining domestic production boosted sentiment. However, further price gains could be limited in lieu of a slew of industry data due over the next two days.
The USDA is scheduled to issue its supply and demand forecasts today, while the MPOB will issue January palm oil output and inventory data tomorrow.
Cargo surveyors Intertek and SGS (Malaysia) will release palm oil export data for Feb1-10 period on Friday as well.
Market anticipations call for a 1% rise in Malaysia's end-January palm oil stocks to 2.05mn tons, as exports continued to fall given that buyers were shifting to cheaper palm oil from Indonesia.
This might restrain the prices from striding higher from now. Among other major developments, Malaysia has set its duty-free export quota for CPO at 3.6mn tons for 2012 after a delay of several weeks. Issuance of the quotas could boost exports in February, as exporters rush to fulfill export contracts and slow stocks from building.
Domestic oilseed prices could remain choppy as rupee continues to dodge definitive trend amid cautious global cues.
Courtesy: IIFL
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