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Wednesday, July 6, 2022

MCX Crude Palm Oil under short covering; Support seen at 564.3

NCDEX Chana under short covering; Support seen at 4258

MCX Cotton under short covering; Resistance seen at 20260

NCDEX Jeera may trade in range between 15535-15835

NCDEX Turmeric likely to move in range between 6202-6314

NCDEX Mustard may trade in range between 3883-3953

Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 4.93% to settled at 2682 while prices up 0.1 rupees.

Now MCX Crude Palm Oil is getting support at 564.3 and below same could see a test of 561.2 level, And resistance is now likely to be seen at 572.3, a move above could see prices testing 577.2.

Crude Palm Oil on MCX settled up by 0.02% at 567.5 tracking firmness in spot demand and overseas prices bolstered by stronger related edible oils and on expectations of weaker output. Palm oil production usually declines during the first quarter of the year in line with seasonal trend.

Monthly output in February is also expected to fall from the previous month on fewer working days. Output in Malaysia, the world’s second-largest producer and exporter, fell 3.9 percent to 1.74 million tonnes last month, data from the Malaysian Palm Oil Board showed.

Malaysia kept its export duty on crude palm oil for March at zero percent, according to a circular on the Malaysian Palm Oil Board’s website.

The duty has been at zero percent since September. Malaysian palm oil prices are set to hold steady in 2019 at an average of 2,303 ringgit ($565) a tonne, according to estimates by the Malaysian Palm Oil Council (MPOC), while global output of the tropical oil is expected to rise by 3 million tonnes.

“Global palm oil production is projected to be 72 million tonnes, with Malaysia and Indonesia as leading producers,” the MPOC said in an online conference presentation. Rising production could cap recent price gains for palm oil, which has been recovering after touching a 3-year low last November at 1,940 ringgit a tonne.

MPOC, Malaysia’s key marketing agency for palm oil, also estimated that Malaysian output would rise to 20.2 million tonnes in 2019 and pegged Indonesian production at 42.8 million tonnes.

Trading Ideas:
–Crude Palm Oil trading range for the day is 561.2-577.2.
–Crude palm oil gained tracking firmness in spot demand and overseas prices bolstered by stronger related edible oils and on expectations of weaker output.
–Output in Malaysia, fell 3.9 percent to 1.74 million tonnes last month, data from the Malaysian Palm Oil Board showed.
–Malaysia kept its export duty on crude palm oil for March at zero percent, according to a circular on the Malaysian Palm Oil Board’s website.
–Crude palm oil prices in spot market gained by 2.80 rupees and settled at 569.20 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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