MCX Crude Palm Oil under fresh buying; Resistance seen at 1148
Commodity Online | July 29 2021
UPDATED 11:20:54 IST

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Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 10.09% to settled at 5009 while prices up 0.5 rupees.

Now MCX Crude Palm Oil is getting support at 1132.3 and below same could see a test of 1123.8 levels, and resistance is now likely to be seen at 1148, a move above could see prices testing 1155.2.

Crude Palm Oil yesterday settled up by 0.04% at 1140.7 buoyed by strong demand from top buyer India and a cut in domestic export tax reference price.However upside seen limited weighed down by weaker exports from Malaysian during July 1 to 25.

Exports of Malaysian palm oil products for Jul. 1-25 fell 1.5 percent to 1,150,452 tonnes from 1,167,989 tonnes shipped during Jun. 1-25. Malaysia maintained its August export tax for crude palm oil at 8% and lowered its reference price, according to the Malaysian Palm Oil Board.

Indonesia crude palm oil prices, which were two weeks ago at levels similar to those in Malaysia, are now at a $30 discount. The world's second-largest palm exporter calculated a reference price of 3,975.92 ringgit ($941.16) per tonne for August, down from 4,688.15 ringgit in July.

The export tax structure starts at 3% for crude palm oil in a 2,250 to 2,400 ringgit-per-tonne range. A labour shortage and coronavirus restrictions are clouding the palm oil production outlook in No. 2 producer Malaysia, dimming hopes of a large rise in output in the seasonal peak months during the third quarter of the year. In spot market, Crude palm oil dropped by 3.3 Rupees to end at 1184.7 Rupees.

Trading Ideas:
--Crude Palm Oil trading range for the day is 1123.8-1155.2.
--Crude Palm Oil recovered to gain buoyed by strong demand from top buyer India and a cut in domestic export tax reference price.
--Exports of Malaysian palm oil products for Jul. 1-25 fell 1.5 percent to 1,150,452 tonnes
--However downside seen limited buoyed by strong demand from top buyer India and a cut in domestic export tax reference price.
--In spot market, Crude palm oil dropped  by 3.3 Rupees to end at 1184.7 Rupees.

Courtesy: Kedia Commodities

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