Crude palm Oil on MCX settled up by 2.43% at 580.7 on the back of pickup in demand at the spot market. Prices seen supported on lower stockpiles reported by Malaysia Palm Oil Board and after the world's second biggest oil producer rose export tax data. Palm oil prices were up on supply worries after MPBO said that Palm oil stockpiles slipped 17.29% to 1.46 million tons in August end compared to 1.770 million tons a month ago, data showed. Further prices of the oil will also be supported by higher export tax imposed by Malaysia on oil for October month, indicating lower supply situation.
Malaysian Palm Oil Board increased the export tax on crude palm oil for October to 6.5% as against 5.0% in Sept, a press release by the board said. Malaysia’s total palm oil stocks fell 17.29 per cent to 1.46 million tonnes in August against 1.77 million tonnes in the previous month, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil stocks declined 25.78 per cent to 757,405 tonnes in August from 1.02 million tonnes at end-July. The MPOB said processed palm oil stocks dropped 5.73 per cent to 707,086 tonnes in August versus 750,096 tonnes in July.
It said crude palm oil output in August increased 7.32 per cent to 1.70 million tonnes from 1.59 million tonnes in July. Technically market is under fresh buying as market has witnessed gain in open interest by 6.82% to settled at 4294 while prices up 13.8 rupee, now CPO is getting support at 572.7 and below same could see a test of 564.6 level, And resistance is now likely to be seen at 585.2, a move above could see prices testing 589.6.
--CPO trading range for the day is 564.6-589.
--Crude palm oil prices ended with gains supported on the back of pickup in demand at the spot market.
--Prices seen supported on lower stockpiles reported by Malaysia Palm Oil Board and after the producer rose export tax data.
--MPBO said that Palm oil stockpiles slipped 17.29% to 1.46 million tons in August end compared to 1.770 million tons a month ago.
--Crude palm oil prices in spot market gained by 11.30 rupees and settled at 587.90 rupees.
Courtesy: Kedia Commodities