Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 11.12% to settled at 2765 while prices up 2.4 rupees.
Now MCX Crude Palm Oil is getting support at 615 and below same could see a test of 608.2 levels, and resistance is now likely to be seen at 625.8, a move above could see prices testing 629.8.
Crude Palm Oil yesterday settled up by 0.39% at 621.7 on short covering after prices dropped amid concerns of higher output in May.
Indian buyers have resumed purchases of Malaysian palm oil after a four-month gap following a diplomatic row.
Malaysia will restart its nationwide roll-out of the B20 biodiesel programme in September after postponing it due to a two-month coronavirus-driven curbs, alleviating concerns that the mandate would be abolished amid low crude prices.
Malaysia's May 1-15 palm oil export shows a steady increase as the palm oil prices are attracting fresh demand due to lucrative levels and ease in coronavirus-related lockdown in some countries.
Malaysia has lowered its export duty on crude palm oil to 0% for June from 4.5% in May, the Malaysian Palm Oil Board said, citing the national customs department.
There has been a slump in global demand of the edible oil as efforts to slow the spread of the coronavirus outbreak shuttered restaurants and curbed travel around the world.
According USDA May estimate, India’s 2020/21 palm oil import estimate have been increased to 9.2 MMT from 9 MMT in 2019/20, higher by 2.22 percent y-o-y. Palm oil consumption have been raised to 9.43 MMT in 2020/21 from 9.31 MMT in 2019/20, higher by 1.29 percent y-o-y.
--Crude Palm Oil trading range for the day is 608.2-629.8.
--Crude Palm Oil recovered on short covering after prices dropped amid concerns of higher output in May.
--Indian buyers have resumed purchases of Malaysian palm oil after a four-month gap following a diplomatic row.
--Malaysia, the world's second-largest producer, slashed its crude palm oil export duty to zero for June.
--The government's monthly reference price for CPO is set at $653.76 per tonne for April, below a tax threshold of $750 per
Courtesy: Kedia Commodities