MCX Crude Palm Oil under long liquidation
Commodity Online | August 10 2018
UPDATED 10:43:15 IST

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Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 4.5% to settled at 6671 while prices down 1.6 rupees.

Now MCX Crude Palm Oil is getting support at 591 and below same could see a test of 588.4 level, And resistance is now likely to be seen at 595.6, a move above could see prices testing 597.6.

Crude Palm Oil on MCX settled down by -0.27% at 593.5 tracking weakness in spot demand and overseas prices amid higher domestic stocks. Palm oil end-July stockpiles is expected to rise 7 percent to 2.34 million tonnes, while production was seen up 15.9 percent to 1.54 million tonnes.

Meanwhile, exports were also forecast to gain 0.9 percent to 1.14 million tonnes. Malaysian palm oil prices are set to average 2,410 ringgit ($591) a tonne in 2018, the Malaysian Palm Oil Council (MPOC) forecast, down about 14 percent from last year's average prices.

The MPOC also forecast palm oil output in Malaysia, the world's second largest producer, at 20.3 million tonnes in 2018, above last year's 19.92 million tonnes due to better yields. "For the second half of 2018, palm oil production is expected to be higher, contributed by the peak months in October and November," the MPOC said.

Malaysia's palm oil stocks are expected to have risen to their highest in five months at end-July, a second straight gain as output growth outpaced exports.

Palm oil stocks in the world's No.2 producer grew 7 percent in July to 2.34 million tonnes from the previous month, highest since February, according to a median estimate from eight planters.

Trading Ideas:
-- Crude Palm Oil trading range for the day is 588.4-597.6.
--Crude palm oil dropped tracking weakness in spot demand and overseas prices amid higher domestic stocks.
--Palm oil end-July stockpiles is expected to rise 7 percent to 2.34 million tonnes, while production was seen up 15.9 percent to 1.54 million tonnes.
--Malaysian palm oil prices are set to average 2,410 ringgit ($591) a tonne in 2018, the Malaysian Palm Oil Council (MPOC) forecasted.
--Crude palm oil prices in spot market dropped by 1.60 rupees and settled at 589.80 rupees.

Courtesy: Kedia Commodities

 

Commodity Arrivals Rate
Mustard Oil 220 10750.00
Coconut Oil 0.1 21000.00
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Sugar 0.4 4000.00

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