Crude palm Oil on MCX settled up by 1.14% at 596.9 due to good demand for the edible oil in the physical market. Palm oil imports by India fell for a fourth month in August as some buyers switched to soybean oil. As per SEA circular, palm oil imports dropped 16% to 540,633 metric tons in August from a year earlier. SEA data showed imports of palm oil almost doubled to 2.2 mt in Nov-Aug, compared with 1.3 mt a year ago. Government decrease tariff value of CPO to 766$/mt from 770 but increases RBD Palm Oil to 796$/mt from 791$.
A hike in Malaysia's crude palm oil export tax for October is expected to dampen already weakening demand for the tropical oil, but likely below-average output in coming months could support prices. Palm oil shipments for the first 20 days of Sep fell 12 % on slowing demand from India and China. 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. Technically market is under short covering as market has witnessed drop in open interest by -2.21% to settled at 4964 while prices up 6.7 rupee, now CPO is getting support at 590.6 and below same could see a test of 584.2 level, And resistance is now likely to be seen at 600.2, a move above could see prices testing 603.4.
--CPO trading range for the day is 584.2-603.4.
--Crude palm oil gained due to good demand for the edible oil in the physical market.
--As per SEA circular, palm oil imports dropped 16% to 540,633 metric tons in August from a year earlier.
--SEA data showed imports of palm oil almost doubled to 2.2 mt in Nov-Aug, compared with 1.3 mt a year ago.
--Crude palm oil prices in spot market gained by 1.50 rupees and settled at 600.10 rupees.
Courtesy: Kedia Commoditie