Short Covering seen in MCX Crude Palm Oil
Commodity Online | April 26 2019
UPDATED 11:20:33 IST

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Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 29.33% to settled at 964 while prices up 0.4 rupees.

Now MCX Crude Palm Oil is getting support at 537.6 and below same could see a test of 536.6 level, And resistance is now likely to be seen at 539.8, a move above could see prices testing 541.

Crude Palm Oil on MCX settled up by 0.07% at 538.6 on short covering after prices dropped as concerns of high inventory levels in the world's second largest producer persist. Palm oil production throughout Malaysia so far this month is showing monthly gains of 2-5 percent.

Higher output levels would contribute towards a rise in stockpiles, which last year hit its highest levels in at least 18 years. Inventories had last declined 4.6 percent to 2.92 million tonnes at end-March, while production rose to 1.67 million tonnes, up 8.3 percent from February.

Data from cargo surveyors Societe Generale de Surveillance and Intertek Testing Services showed export gains of 1.5-2.2 percent for the April 1-20 period. Independent inspection company AmSpec Agri Malaysia, however, reported a 1.8 percent drop for the same duration.

Malaysia kept its export duty on crude palm oil for May at zero percent, according to a circular on the Malaysian Palm Oil Board's website that cited the national customs department. The duty has been at zero percent since September.

Malaysia kept its export duty on crude palm oil for May at zero percent, according to a circular on the Malaysian Palm Oil Board's website that cited the national customs department. The duty has been at zero percent since September. Official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.

Trading Ideas:
--Crude Palm Oil trading range for the day is 536.6-541.
--Crude Palm Oil gained on short covering after prices dropped as concerns of high inventory levels in the world's second largest producer persist.
--Palm oil production throughout Malaysia so far this month is showing monthly gains of 2-5 percent.
--Malaysia kept its export duty on crude palm oil for May at zero percent.
--Crude Palm Oil prices in spot market gained by 0.50 rupees and settled at 537.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
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