MCX Crude Palm Oil under short covering; Support seen at 721
Commodity Online | June 23 2020
UPDATED 11:20:33 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 7.4% to settled at 2827 while prices up 10.9 rupees.

Now MCX Crude Palm Oil is getting support at 721 and below same could see a test of 711.7 levels, and resistance is now likely to be seen at 735.7, a move above could see prices testing 741.1.

Crude Palm Oil yesterday settled up by 1.52% at 730.3 supported by stronger demand and estimates for lower production. India plans to hike edible oil import taxes by 5% to boost local supply. India's palm oil imports in May plunged 53% from a year ago to 387,006 tonnes.

Indonesia, exported 2.65 million tonnes of palm oil and its refined products in April, the Indonesia Palm Oil Association (GAPKI) said. Malaysia unveiled plans to fully exempt palm oil from export duty this year.

Malaysia’s palm oil output in May is likely to fall 1% from the previous month, citing estimates from the Malaysian Palm Oil Association (MPOA).

Malaysian palm oil inventories at the end of May likely jumped 9.9% from the previous month as production rose, hitting the highest level in six months. Output in the world's second-largest producer behind Indonesia is expected to have risen 3.2% from April to 1.71 million tonnes, the highest in seven months.

An easing of coronavirus containment measures, however, should also boost exports, which were pegged to hit a five-month high in May, rising 7% from April to 1.32 million tonnes as buyers replenish depleting stockpiles.

Trading Ideas:
--Crude Palm Oil trading range for the day is 711.7-741.1.
--Crude Palm Oil gains supported by stronger demand and estimates for lower production.
--India plans to hike edible oil import taxes by 5% to boost local supply
--India's palm oil imports in May plunged 53% from a year ago to 387,006 tonnes
--Malaysia, slashed the June palm oil export duty to zero, lowering its price against rival Indonesian palm.

Courtesy: Kedia Commodities

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