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In India, traders have started to build edible oil inventories for short term with the anticipation of rise in the edible oil prices in coming days, this trend has limited the up-tick movement of MCX CPO futures and s..

08 Feb 2013

LONDON (Commodity Online): As economies of India and China rebound, palm oil, the world’s most used cooking oil may see prices climbing by 16% in 2013, according to the Indonesian Palm Oil Association. The countries form the biggest importers of the most-used cooking oil in the planet.

Chances exist for the cargoes delivered in Rotterdam to climb to $1000/ton by December which is the highest price since last September, Fadhil Hasan, executive director at growers’ group said.

Meanwhile, the largest CPO producer Indonesia has increased its export duty on crude palm oil to 9 per cent for February from 7.5 percent in the previous month and also raised tax for refined palmolein to 3 per cent from 2 per cent.

“Demand is still fairly strong this year,” said Hariyanto Wijaya, a Jakarta-based analyst at PT Mandiri Sekuritas to Bloomberg. “Buying will be sustained” despite. India introducing 2.5 percent tariff on imports last month and China toughening inspections.

Production in Indonesia and Malaysia has entered low-output cycle.

In India, traders have started to build edible oil inventories for short term with the anticipation of rise in the edible oil prices in coming days, this trend has limited the up-tick movement of MCX CPO futures and spot market prices.

“Overall trend for CPO (Crude Palm Oil) for March delivery on India’s MCX is looking bullish at current level for short and medium term. Support is there at 445 and 472 is the resistance,” said Milan Shah, Research Analyst at Commodity Online. The price of the commodity settled at Rs.458.40 in Thursday’s trade.

India's Gross Domestic Product (GDP) growth is estimated at 5.0 percent for 2012-13 when compared to the growth rate of 6.2 per cent in 2011-12, according to the data released by Central Statistical Organisation (CSO) and Ministry of Statistics and Programme Implementation.

The anticipated rate is modest when compared to recession scenarios in several developed nations.


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