Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 3.41% to settled at 3457 while prices up 3 rupees.
Now MCX Crude Palm Oil is getting support at 1094.9 and below same could see a test of 1087.1 levels, and resistance is now likely to be seen at 1109.7, a move above could see prices testing 1116.7.
Crude Palm Oil yesterday settled up by 0.27% at 1102.8 on some low level buying after prices dropped as the Indian Vegetable Oils Producers Association says it is seeing early signs of demand shifting from palm oil to soft oils after India's duty cut made soft oil more attractive.
Malaysia's crude palm oil production in 2021 is forecast to decline by 700,000 tonnes to 18.4 million tonnes due to a labour shortage and erratic weather conditions, state agency the Malaysian Palm Oil Council (MPOC) said.
Neighbouring Indonesia has not faced such labour issues and has expanded its planted area by about 200,000 hectares this year, MPOC chief executive Wan Zawawi Wan Ismail said. Production in the world's largest palm oil producer is projected to rise by 2.5 million tonnes to 45.5 million tonnes, he said.
Indonesian palm oil exports in 2021 will likely be much lower than previously forecast, at 34.423 million tonnes, the vice chairman of the Indonesia Palm Oil Association (GAPKI) told. That would be lower than the 37.5 million tonnes forecast in February, and down 1.2% from the year earlier.
Exports of crude palm oil in 2021 meanwhile are forecast to fall 54.37% from a year earlier to 3.272 million tonnes. GAPKI earlier forecast crude palm oil shipments to stand at 7.5 million tonnes this year. In spot market, Crude palm oil gained by 18.4 Rupees to end at 1121.2 Rupees.
--Crude Palm Oil trading range for the day is 1087.1-1116.7.
--Crude Palm Oil gained on some low level buying after prices dropped as IVPA says sees demand shift from palm oil to soft oil after India's duty cut
--Malaysia's 2021 palm oil output seen lower at 18.4 mln T – MPOC
--Indonesia 2021 palm exports +1.2% y/y, crude palm oil exports drop
--In spot market, Crude palm oil gained by 18.4 Rupees to end at 1121.2 Rupees.
Courtesy: Kedia Commodities