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Monday, December 6, 2021

MCX Crude Palm Oil likely to move in a range of 1089.2-1117.8

Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 4.25% to settled at 3579 while prices up 0.3 rupees.

Now MCX Crude Palm Oil is getting support at 1094.5 and below same could see a test of 1089.2 levels, and resistance is now likely to be seen at 1108.8, a move above could see prices testing 1117.8.

Crude Palm Oil yesterday settled up by 0.03% at 1099.8 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 114.7 Rupees to end at 1109.8 Rupees.

Trading Ideas:
–Crude Palm Oil trading range for the day is 1089.2-1117.8.
–Crude Palm Oil settled flat 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 114.7 Rupees to end at 1109.8 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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