Fresh buying seen in MCX Crude Palm Oil; Support seen at 559.3
Commodity Online | September 19 2016
UPDATED 15:03:45 IST

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CPO on MCX settled up 1.81% at 566.9 tracking firmness in spot demand on demand worries. Malaysia palm oil exports during Sep 1-15 dropped 9% compared to a month earlier on weak demand from European Union and India and Subcontinent, data showed. Malaysia palm oil exports fell to 669,866 tons during Sep 1-15 compared to 733,369 tons for the same period a month ago, Dow Jones reported citing data from Intertek, a private surveyor.

Malaysia palm oil exports to India slipped by 29.33% to 175,650 tons during Sep 1-15 compared to 248,550 tons a month ago. Meanwhile, the government of India trimmed tariff value of crude palm oil to $766 per tons compared to $770 per tons. Malaysia’s total palm oil stocks fell 17.29 per cent to 1.46 million tonnes in August against 1.77 million tonnes in the previous month, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil stocks declined 25.78 per cent to 757,405 tonnes in August from 1.02 million tonnes at end-July.

The MPOB said processed palm oil stocks dropped 5.73 per cent to 707,086 tonnes in August versus 750,096 tonnes in July. It said crude palm oil output in August increased 7.32 per cent to 1.70 million tonnes from 1.59 million tonnes in July. Palm kernel output rose 9.72 per cent to 403,245 tonnes in August compared with 367,516 tonnes in the previous month, it said. Technically market is under fresh buying as market has witnessed gain in open interest by 6.41% to settled at 4020 while prices up 10.1 rupee, now CPO is getting support at 559.3 and below same could see a test of 551.6 level, And resistance is now likely to be seen at 571.6, a move above could see prices testing 576.2.

Trading Ideas:

--CPO trading range for the day is 551.6-576.2.

--Crude palm oil prices ended with gains tracking firmness in spot demand on demand worries.

--The government of India trimmed tariff value of crude palm oil to $766 per tons compared to $770 per tons.

--Malaysia’s total palm oil stocks fell 17.29 per cent to 1.46 million tonnes in August against 1.77 million tonnes in the previous month.

--Crude palm oil prices in spot market gained by 6.20 rupees and settled at 576.60 rupees.

Courtesy: Kedia Commodities

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