MCX Crude Palm Oil under long liquidation; Support seen at 531
Commodity Online | April 11 2019
UPDATED 10:40:23 IST

NCDEX Mustard Seed under long liquidation; Support seen at 3729

NCDEX Turmeric under short covering; Support seen at 6355

NCDEX Jeera likely to move in a range of 16050-17070

MCX Crude Palm Oil may trade between 539.2-544.6 levels

MCX Cotton under long liquidation

Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 0.83% to settled at 2631 while prices down 4.1 rupees.

Now MCX Crude Palm Oil is getting support at 531 and below same could see a test of 526.1 level, And resistance is now likely to be seen at 541.8, a move above could see prices testing 547.7.

Crude palm Oil on MCX settled down by 0.76% at 535.8 on profit booking after prices rallied on expectations of dwindling stockpiles and improved exports.

Malaysia's palm oil stockpiles at the end of March fell 4.6 percent from the previous month to 2.92 million tonnes, industry regulator the Malaysian Palm Oil Board (MPOB) said. Production in March rose 8.3 percent from the previous month to 1.67 million tonnes.

Exports jumped 22.4 percent from February to 1.62 million tonnes, according to the MPOB data. A Reuters survey had forecast palm oil's end-March stockpiles to fall 6.4 percent to 2.85 million tonnes, while production was forecast to rise 6.8 percent to 1.65 million tonnes. Exports were expected to gain 23.4 percent to 1.63 million tonnes.

India's palm oil imports in 2018/19 is expected to jump about 10% on year to a record high due to sharp fall in the prices. This made importers in India more attractive compared to rival soyoil and sunflower oil. For first half of Apr, tariff value for CPO and RBD Palmolein cut by 24 and 4 dollar to 529 and 567 dollar per ton.

According to SEA monthly update, import of Crude palm oil down 9% on year in February to 4.98 lt but RBD palmolein imports surged by more than 19% by to 2.41 lt mainly on reduction in duty difference. According to USDA monthly report in February, palm oil consumption for India is forecast at 10.6 mt, up 16.7% on year.   

Trading Ideas:
--Crude Palm Oil trading range for the day is 526.1-547.7.
--Crude Palm Oil prices on profit booking after prices rallied on expectations of dwindling stockpiles and improved exports.
--India's palm oil imports in 2018/19 is expected to jump about 10% on year to a record high due to sharp fall in the prices.
--Malaysia's palm oil stockpiles at the end of March fell 4.6 percent from the previous month to 2.92 million tonnes, MPOB said.
--Crude palm oil prices in spot market dropped by 6.60 rupees and settled at 533.50 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 14.93 9380.00
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