Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 7.94% to settled at 3187 while prices up 1.4 rupees.
Now MCX Crude Palm Oil is getting support at 553.7 and below same could see a test of 551.7 levels, and resistance is now likely to be seen at 557.5, a move above could see prices testing 559.3.
Crude Palm Oil on MCX settled up by 0.25% at 555.8 on expectation of a slower than forecast pace of growth in monthly output and awaited cues from the country's national budget announcement for next year. Base import price for CPO has been hiked to $551 from $548.
Malaysia's September palm output data is expected next week, and market is estimating a rise in output which may send stocks higher as exports stayed sluggish. Exports of Malaysian palm oil products for September fell nearly 20% from a month earlier, cargo surveyor Intertek Testing Services said. Malaysia's palm oil stockpiles at the end of August declined 5.3% from the previous month to 2.25 million tonnes, according to Malaysian Palm Oil Board (MPOB).
Palm oil output in August gained 4.6% to 1.82 million tonnes from the previous month, and exports rose 16.4% from July to 1.73 million tonnes. In July, imports of crude palm oil rose 47% on year to 532,784 tn, according to the Solvent Extractors' Association of India.
According to Indonesia trade ministry, Indonesia kept Oct crude palm oil export duty unchanged at zero. The reference price is set at USD 575.9 per ton, lower than lower threshold for export duty below USD 570 to calculate export levy. Indonesia taxes palm oil above trigger price of USD 750 per ton.
--Crude Palm Oil trading range for the day is 551.7-559.3.
--Crude Palm Oil gained on expectation of a slower than forecast pace of growth in monthly output.
--Exports of Malaysian palm oil products for September fell nearly 20% from a month earlier
--Malaysia's palm oil stockpiles at the end of August declined 5.3% from the previous month to 2.25 million tonnes
--Crude Palm Oil prices in the spot market gained by 3.30 rupees and settled at 552.00 rupees.
Courtesy: Kedia Commodities