MCX Crude Palm Oil under long liquidation; Support seen at 532.4
Commodity Online | April 16 2019
UPDATED 11:40:24 IST

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Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 1.96% to settled at 2647.

Now MCX Crude Palm Oil is getting support at 532.4 and below same could see a test of 531.1 level, And resistance is now likely to be seen at 535.7, a move above could see prices testing 537.7.

Crude palm Oil on MCX settled down by 0.09% at 533.8 amid weakness in spot demand and overseas prices weighed down by expectations of rising production. Official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.

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.           

Trading Ideas:
--Crude Palm Oil trading range for the day is 531.1-537.7.
--Crude Palm Oil dropped amid weakness in spot demand and overseas prices weighed down by expectations of rising production.
--Official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.
--Malaysia's palm oil stockpiles at the end of March fell 4.6 percent from the previous month to 2.92 million tonnes.
--Crude palm oil prices in spot market dropped by 1.80 rupees and settled at 531.50 rupees.

Courtesy: Kedia Commodities

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