MCX Crude Palm Oil under short covering; Support seen at 1036.6
Commodity Online | March 05 2021
UPDATED 11:20:46 IST

NCDEX Chana under long liquidation; Resistance seen at 5799

MCX Cotton under long liquidation; Support seen at 21160

NCDEX Jeera may trade between 14035-14415 levels

NCDEX Turmeric under fresh selling; Resistance seen at 8162

NCDEX Mustard Seed under short covering; Support seen at 6842

Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 0.51% to settled at 7934 while prices up 16.5 rupees.

Now MCX Crude Palm Oil is getting support at 1036.6 and below same could see a test of 1023.1 levels, and resistance is now likely to be seen at 1060.6, a move above could see prices testing 1071.1.

Crude Palm Oil yesterday settled up by 1.6% at 1050 on the back of strength in rival soyoil, although gains were capped by expectations of a rise in February-end inventories. End-stocks for both February and March will remain below 1.4 million tonnes.

Mixed weather has kept 2020/21 Malaysia palm oil production estimates unchanged at 19.1 million tonnes. A slowdown in rainfall kept 2020/21 Indonesian production estimates at 46.0 million tonnes.

Malaysia's palm oil stocks likely grew 7.6% month-on-month to 1.43 million tonnes at end-February due to a slower decline in production compared to exports.

Exports of Malaysian palm oil products for February fell 4.6% to 1,052,779 tonnes from January as China and the United States cut down purchases, cargo surveyor Societe Generale de Surveillance said.

European Union palm oil imports in the 2020/21 season stood at 3.69 million tonnes, compared with 3.78 million a year earlier, data published by the European Commission showed.

Exports of Malaysian palm oil products in February fell 4.6% from January to 1,052,779 tonnes, cargo surveyor Societe Generale de Surveillance said.

Output in Malaysia  the world's second-largest producer of palm oil – is seen increasing as Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated Feb. 1-25 production to rise by 19.78%. In spot market, Crude palm oil gained by 3.7 Rupees to end at 1065 Rupees.

Trading Ideas:
--Crude Palm Oil trading range for the day is 1023.1-1071.1.
--Crude Palm Oil gained on the back of strength in rival soyoil, although gains were capped by expectations of a rise in February-end inventories.
--End-stocks for both February and March will remain below 1.4 million tonnes.
--Mixed weather has kept 2020/21 Malaysia palm oil production estimates unchanged at 19.1 million tonnes.
--In spot market, Crude palm oil gained  by 3.7 Rupees to end at 1065 Rupees.

Courtesy: Kedia Commodities
Commodity Arrivals Rate
Mustard Oil 1 12500.00
Ghee 9 43000.00
Coconut Oil 0.1 18100.00
Tamarind Seeds 25 3150.00

More