Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 27.21% to settled at 3541 while prices down 41.1 rupees.
Now MCX Crude Palm Oil is getting support at 1091.4 and below same could see a test of 1066.6 levels, and resistance is now likely to be seen at 1155.6, a move above could see prices testing 1195.
Crude Palm Oil yesterday settled down by 3.55% at 1116.3 as India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world’s biggest vegetable oil buyer tries to cool near-record price rises.
The south Asian country also reduced Agriculture Infrastructure and Development Cess (AIDC) on crude palm oil imports to 7.5% from 20%, while AIDC on crude soyoil and crude sunflower oil reduced to 5% from 20%, the government said.
Pressure also seen as a slump in early October exports outweighed support from tightening inventories.
Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September, according to AmSpec Agri Malaysia.
Exports in October and November are unlikely to sustain the surge seen last month as key buyer India enters the winter season.
Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature.
Malaysia’s end-September palm oil stocks fell more sharply than expected, down nearly 7% from the month before, as export demand surged while production stayed flat, Malaysian Palm Oil Board data showed.
Post is adjusting its MY 2021/22 crude palm oil (CPO) production forecast down 1.5 million metric tons (MT) from the USDA Official estimate to 18.2 million MT. In spot market, Crude palm oil dropped by 5 Rupees to end at 1207 Rupees.
–Crude Palm Oil trading range for the day is 1066.6-1195.
–Crude Palm Oil dropped as India slashed its base import tax on crude palm oil, to zero from 2.5%
–Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September
–Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature.
–In spot market, Crude palm oil dropped by 5 Rupees to end at 1207 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online