Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 0.56% to settled at 3978 while prices up 4.5 rupees.
Now MCX Crude Palm Oil is getting support at 546.9 and below same could see a test of 544.8 levels, and resistance is now likely to be seen at 550.6, a move above could see prices testing 552.2.
Crude Palm Oil on MCX settled up 0.83% at 549.1 tracking increase in tariff values and improving demand. Refined palm oil shipments are rising as the import duty difference between refined and crude palm oil has fallen to 5% from 10% earlier.
India imported 1.59 million tonnes of refined palm oil in first half of 2019, up 50% from a year ago, according to SEA. New Delhi's refined palm oil imports are likely to jump to a record 3 million tonnes in the 2018/19 marketing year ending on Oct. 31, up 43% from a year ago.
Indonesia's Palm Oil Association (GAPKI) urged the government to increase import tariffs on dairy products from the European Union in retaliation for the bloc's policies on palm oil.
Exports of palm oil from the world's top producer Indonesia to Europe are under threat after the EU decided that palm oil should be phased out from renewable transportation fuels due to its impact on deforestation.
The European Commission is also proposing 8%-18% anti-subsidy duties on biodiesel imports from Indonesia.
Malaysian Palm Oil Council CEO Kalyana Sundram has said that India may import 2.5 million tonne (MT) palm oil from Malaysia following its 5% preferential duty on the edible oil. In 2018, India had imported 2.18 MT from Malaysia.
--Crude Palm Oil trading range for the day is 544.8-552.2.
--Crude Palm Oil ended with gains tracking increase in tariff values and improving demand.
--The Indonesia Palm Oil Association expects palm oil exports to fall to around 32 million tonnes this year from 34.7 million tonnes in 2018.
--Indonesia's palm oil prices are expected to rise to $570 a tonne in January-June of next year.
--Crude Palm Oil prices in the spot market gained by 8.30 rupees and settled at 533.30 rupees.
Courtesy: Kedia Commodities