Crude Palm oil yesterday traded with the negative node and settled -0.32% down at 498.9 on profit booking by the speculators due to sluggish domestic demand.
Trading sentiment also remained bearish as palm oil prices in Malaysia traded lower on slowing demand for the commodity among bio fuel producers.
Malaysian Palm oil has lost almost 20 percent so far this year on high stocks and a slowdown in demand, although some traders bet that festival demand in India may see some orders coming in.
The market expects exports during that period to stand at 977,000 tonnes, down 16.5 percent from 1.17 million tonnes in August 1-20.
In yesterday's trading session Crude Palm oil has touched the low of 497.1 after opening at 497.1, and finally settled at 498.9.
For today's session market is looking to take support at 497.7, a break below could see a test of 496.4 and where as resistance is now likely to be seen at 499.6, a move above could see prices testing 500.2.
Trading Ideas:
Crude Palm Oil trading range is 496.4-500.2.
Crude palm oil prices declined on profit booking due to sluggish domestic demand.
Malaysian Palm oil has lost almost 20 percent so far this year on high stocks and a slowdown in demand
Crude palm oil looks to test support at 497.70 and resistance is seen at 499.60.
Crude palm oil prices in spot market prices dropped 4.10 rupees and settled at 498 rupees.
Courtesy: Kedia Commodities
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