Technically MCX Crude Palm Oil is under long liquidation as market has witnessed drop in open interest by -2.23% to settled at 4568 while prices down -2.7 rupees.
Now CPO is getting support at 558.5 and below same could see a test of 557.4 level, And resistance is now likely to be seen at 561.2, a move above could see prices testing 562.8.
Crude palm Oil on MCX settled down by -0.48% at 559.5 on profit booking after prices gained due to reports of good demand from the stockists.
Crude palm oil output in Malaysia, the world's second biggest CPO producer, dropped by 6% compared to previous month, data released by Malaysian Palm Oil Board showed. Palm oil output in December month fell to 1.83 million tons compared to 1.94 million tons in November.
Malaysian palm oil exports also climbed by 5.18% to 1.42 million tons compared to 1.35 million tons previous month, data showed. Malaysian palm oil inventories surged to a more than two-year high of 2.7 million tonnes at end-December, as production continued to outpace exports, government data showed.
Stockpiles in Malaysia rose 7 percent on the previous month to the largest level since November 2015, according to the Malaysian Palm Oil Board (MPOB) data. Inventories were also at the highest year-end level since at least 2000, following a sixth consecutive month of gains.
POI/ Production fell 5.6 percent in December to 1.8 million tonnes, but output was still at its highest for the final month of the year since at least 2000, the MPOB data showed.
The figure took Malaysia's total 2017 production to 19.9 million tonnes, up 15 percent on a year earlier. Output in 2018 is expected to exceed 20 million tonnes, said Malaysia's plantations minister on Tuesday, as crops recover further from a dry weather El Nino event two years ago.
--CPO trading range for the day is 557.4-562.8.
--Crude palm oil dropped on profit booking after prices gained due to reports of good demand from the stockists.
--Crude palm oil output in Malaysia, the world's second biggest CPO producer, dropped by 6% compared to previous month, data released by MPOB.
--Palm oil output in December month fell to 1.83 million tons compared to 1.94 million tons in November.
--Crude palm oil prices in spot market dropped by 2.60 rupees and settled at 554.70 rupees.
Courtesy: Kedia Commodities