MCX Crude Palm Oil under fresh buying; Resistance seen at 1208.2
Commodity Online | May 07 2021
UPDATED 11:20:27 IST

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Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 1.62% to settled at 5147 while prices up 1.2 rupees.

Now MCX Crude Palm Oil is getting support at 1195.8 and below same could see a test of 1190.2 levels, and resistance is now likely to be seen at 1208.2, a move above could see prices testing 1215.

Crude Palm Oil yesterday settled up by 0.1% at 1201.4 with prices underpinned by concerns over world vegetable oil supplies and strong demand. Malaysia's palm oil stockpile in April likely inched lower despite production rising to a six-month high, hampered by robust exports and plummeting imports.

Inventories were seen declining 0.27% from the month before to 1.44 million tonnes. Output in the world's second-largest producer likely jumped 8.9% from March to 1.55 million tonnes, marking a second straight month of gain and hitting its highest since October.

Exports likely rose 10% to 1.3 million tonnes, while imports were seen down 21.4% to 108,000 tonnes. Support also seen as labour shortage due to the COVID-19 pandemic is impacting production.

Malaysia has approved the return of 32,000 foreign workers to the estates but progress is slow due to the sudden surge in COVID-19 cases. Coronavirus infections in India, the world's biggest palm oil importer, surged past 20 million on Tuesday, raising demand concerns.

Indonesia's palm oil output is expected to jump 7.1% to 55.69 million tonnes in 2021, on a forecast for more conducive weather conditions, a researcher at the state-owned Indonesia Oil Palm Research Institute (IOPRI) said. In spot market, Crude palm oil gained by 23 Rupees to end at 1237 Rupees.

Trading Ideas:
--Crude Palm Oil trading range for the day is 1190.2-1215.
--Crude Palm Oil edged up with prices underpinned by concerns over world vegetable oil supplies and strong demand.
--Malaysia's palm oil stockpile in April likely inched lower despite production rising to a six-month high, hampered by robust exports and plummeting imports.
--Support also seen as labour shortage due to the COVID-19 pandemic is impacting production
--In spot market, Crude palm oil gained by 23 Rupees to end at 1237 Rupees.

Courtesy: Kedia Commodities

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