Home Commodity Market News MCX Crude Palm Oil market under short covering

MCX Crude Palm Oil market under short covering

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Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 4.39% to settled at 5756 while prices up 3.7 rupees, now CPO is getting support at 594.7 and below same could see a test of 589.7 level, And resistance is now likely to be seen at 603, a move above could see prices testing 606.3.

Crude Palm Oil on MCX settled up by 0.62% at 599.6 on short covering after prices dropped due to higher domestic stocks and steady domestic demand. The base import price of crude palm oil was cut to $573 per tn from $578 per tn for the second fortnight of August.

Moreover, govt cuts RBD palm oil base import price to $598/tn vs $ 599tn. Based on global prices and fluctuations in foreign exchange rates, the government revises base import prices every fortnight. According to SEA monthly update, palm oil imports into the country were down 29% and 39% for CPO and RBD Palmolein in July compared to last year.

India’s palm oil imports dropped in July due to higher taxes on shipments while weaker rupees making imports expensive. During Nov-Jul, palm oil imports (CPO + RBD) declined to 60.4 lt from 66.9 lt. The MPOB had reported on Friday that July end-stocks in Malaysia rose 1.3 percent to 2.21 million tonnes in a second month of gains, while exports grew 6.8 percent from June to 1.21 million tonnes.

Meanwhile, production in July rose 12.8 percent from the previous month to 1.5 million tonnes and is set to further climb, in line with seasonal trend until its peak towards the last quarter of the year.   

Trading Ideas:
–CPO trading range for the day is 589.7-606.3.
–Crude palm oil gained on short covering after prices dropped due to higher domestic stocks and steady domestic demand.
–The base import price of crude palm oil was cut to $573 per tn from $578 per tn for the second fortnight of August.
–The MPOB had reported that July end-stocks in Malaysia rose 1.3 percent to 2.21 million tonnes in a second month of gains.
–Crude palm oil prices in spot market dropped by 0.90 rupees and settled at 589.90 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com