Crude Palm oil yesterday traded with the positive node and settled 3.01% up at 466.4 on fresh buying as support seen from the international market where Malaysian palm oil futures bounced on improving sentiment after a news report said European policy makers will increase financial firepower to resolve the region's debt woes.
Although euro zone officials denied the reported agreement to increase the bailout fund by five-fold, global financial markets rose on expectations that a deal was imminent.
Market are covering nearby palm oil contracts given strong prompt demand, although expectations of high production this month could see prices come back again.
Crude palm oil futures also supported as demand for the tropical oil may may gained in the major Hindu festival Diwali end-October, as major buyer India will well-stocked. In yesterday's trading session Crude Palm oil has touched the low of 464.4 after opening at 466, and finally settled at 466.4.
For today's session market is looking to take support at 464.7, a break below could see a test of 463 and where as resistance is now likely to be seen at 467.8, a move above could see prices testing 469.2.
Trading Ideas:
Crude Palm Oil trading range is 463-469.2.
CPO eased tracking weakness in overseas amid worries that euro-zone debt crisis may not be resolved
SGS (Malaysia) Bhd., pegged Oct. 1-15 shipments at 719,575 tons, a rise of 10%.
Crude palm oil looks to test support at 462.80 and resistance is seen at 465.80 level.
Crude palm oil prices in spot market prices gained by 2.50 rupees and ended at 365.50 rupees.
Courtesy: Kedia Commodities
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