MCX Crude Palm Oil under short covering; Resistance seen at 553.9

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Technically Crude Palm Oil market is under short covering as market has witnessed drop in by 17.89% to settled at 2662 while prices up 9.8 rupees.

Now MCX Crude Palm Oil is getting support at 543.3 and below same could see a test of 536.4 , and resistance is now likely to be seen at 553.9, a move above could see prices testing 557.6.

Crude Palm Oil on MCX settled up by 1.81% at 550.1 tracking increase in tariff values and improving demand. Refined palm oil shipments are rising as the import duty difference between refined and crude palm oil has fallen to 5% from 10% earlier.

India imported 1.59 million tonnes of refined palm oil in first half of 2019, up 50% from a year ago, according to SEA. New Delhi’s refined palm oil imports are likely to jump to a record 3 million tonnes in the 2018/19 marketing year ending on Oct. 31, up 43% from a year ago.

Indonesia’s Palm Oil Association (GAPKI) urged the government to increase import tariffs on dairy products from the European Union in retaliation for the bloc’s policies on palm oil.

Exports of palm oil from the world’s top producer Indonesia to Europe are under threat after the decided that palm oil should be phased out from renewable transportation fuels due to its impact on deforestation.

The European Commission is also proposing 8%-18% anti-subsidy duties on biodiesel imports from Indonesia. Malaysian Palm Oil Council CEO Kalyana Sundram has said that India may import 2.5 million tonne (MT) palm oil from Malaysia following its 5% preferential duty on the edible oil.

Trading Ideas:
–Crude Palm Oil trading range for the day is 536.4-557.6.
–Crude Palm Oil prices gained tracking increase in tariff values and improving demand.
–Refined palm oil shipments are rising as the import duty difference between refined and crude palm oil has fallen to 5% from 10% earlier.
–India imported 1.59 million tonnes of refined palm oil in first half of 2019, up 50% from a year ago, according to SEA.
–Crude Palm Oil prices in the spot market gained by 0.90 rupees and settled at 546.30 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com