Crude palm Oil on MCX settled up by 0.31% at 549.8 on higher demand following improved Malaysia palm oil export data and on supply worries from Indonesia, the world's biggest palm oil producer. Malaysia palm oil exports during Aug 1-31 climbed 27.55% compared to a month earlier on improved demand from China, European Union and India and Subcontinent, data showed. Malaysia palm oil exports rose to 1.62 million tons during Aug 1-31 compared to 1.27 million tons for the same period a month ago, Dow Jones reported citing data from Intertek, a private surveyor.
Palm oil prices were also up as Indonesia's palm oil production is expected to decline by 5% to 29.6 million tons from a realization of 31.2 million tons in the previous year. At the start of the year the Agriculture Ministry of Indonesia targeted CPO output around 31-32 million tons in full-year 2016. Lower than targeted CPO production is the result of a looming strong La Nina weather phenomenon which brings wetter-than-usual conditions to Southeast Asia and the strong El Nino earlier this year bringer droughts to Southeast Asia.
According to the latest data from the Indonesian Palm Oil Producers Association (Gapki), the world's biggest CPO producer grew 15.3 million tons of CPO in the first half of 2016, while exports stood at 12.5 million tons. India's monthly palm oil imports fell to 570,051 tonnes in July, the lowest since February 2015. Technically market is under fresh buying as market has witnessed gain in open interest by 1.95% to settled at 5059 while prices up 1.7 rupee, now CPO is getting support at 545.7 and below same could see a test of 541.6 level, And resistance is now likely to be seen at 553.2, a move above could see prices testing 556.6.
--CPO trading range for the day is 541.6-556.6.
--Crude plam oil gained on higher demand following improved Malaysia palm oil export data and on supply worries.
--Malaysia palm oil exports rose to 1.62 million tons during Aug 1-31 compared to 1.27 million tons for the same period a month ago.
--Palm oil prices were also up as Indonesia's palm oil production is expected to decline by 5% to 29.6 million tons.
--Crude palm oil prices in spot market gained by 6.50 rupees and settled at 563.20 rupees.
Courtesy: Kedia Commodities