Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 8.61% to settled at 2845 while prices up 10.2 rupees.
Now MCX Crude Palm Oil is getting support at 714.3 and below same could see a test of 704.5 levels, and resistance is now likely to be seen at 729.7, a move above could see prices testing 735.3.
Crude Palm Oil yesterday settled up by 1.43% at 724 tracking rise in overseas prices amid supply concerns and signs of demand recovery. Prices also gained on prospects of lean output from major producers Indonesia and Malaysia.
Malaysia is losing up to 25% of its potential palm oil yield due to a labour shortage that is expected to worsen in the coming months, the Malaysian Palm Oil Association (MPOA) said on Monday.
The group, which represents plantation firms, said the government's decision to freeze the recruitment of new foreign workers until December could lead to the "demise" of the industry. The Southern Peninsular Palm Oil Millers Association had previously forecast July 1-10 production to fall 17.4%.
The world's second largest palm oil producer Malaysia has estimated its total palm oil export value this year at 65-70 billion ringgit ($15.24 billion-$16.41 billion), the Plantation Industries and Commodities Ministry said.
This is up from 63.73 billion ringgit in palm oil exports achieved last year, minister Mohd Khairuddin Aman Razali told parliament. Palm oil exports in the same period last year were 31.92 billion ringgit, he said.
--Crude Palm Oil trading range for the day is 704.5-735.3.
--Crude Palm Oil gains tracking rise in overseas prices amid supply concerns and signs of demand recovery.
--Prices also gained on prospects of lean output from major producers Indonesia and Malaysia.
--Malaysia losing up to 25% of palm oil yield due to labour crunch – MPOA
--In spot market, Crude palm oil remains unchanged at by 0 Rupees to end at 729.9 Rupees.
Courtesy: Kedia Commodities