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Monday, July 4, 2022

MCX Crude Palm Oil may trade between 1107.9-1131.9 levels

Technically Crude Palm Oil market is under fresh selling as market has witnessed gain in open interest by 1.57% to settled at 5444 while prices down 3.4 rupees.

Now MCX Crude Palm Oil is getting support at 1112.8 and below same could see a test of 1107.9 levels, and resistance is now likely to be seen at 1124.8, a move above could see prices testing 1131.9.

Crude Palm Oil yesterday settled down by 0.3% at 1117.7 on pofit booking after prices seen supported as supply constraints due to the rainy season and strength in rival oils supported the market.

Prices are seen rising as the rainy season and coronavirus-linked labour shortage are slowing output in Malaysia. October export data improved amid tight supply worries.

The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia.

The Indian Vegetable Oils Producers Association says it is seeing early signs of demand shifting from palm oil to soft oils after India’s duty cut made soft oil more attractive.

Malaysia’s crude palm oil production in 2021 is forecast to decline by 700,000 tonnes to 18.4 million tonnes due to a labour shortage and erratic weather conditions, state agency the Malaysian Palm Oil Council (MPOC) said.

Neighbouring Indonesia has not faced such labour issues and has expanded its planted area by about 200,000 hectares this year, MPOC chief executive Wan Zawawi Wan Ismail said. Production in the world’s largest palm oil producer is projected to rise by 2.5 million tonnes to 45.5 million tonnes, he said.

Indonesian palm oil exports in 2021 will likely be much lower than previously forecast, at 34.423 million tonnes, the vice chairman of the Indonesia Palm Oil Association (GAPKI) told. In spot market, Crude palm oil gained by 6.8 Rupees to end at 1151.8 Rupees.

Trading Ideas:
–Crude Palm Oil trading range for the day is 1107.9-1131.9.
–Crude Palm Oil dropped on pofit booking after prices seen supported as supply constraints due to the rainy season
–Prices are seen rising as the rainy season and coronavirus-linked labour shortage are slowing output in Malaysia.
–The Southern Peninsula Palm Oil Millers’ Association estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia.
–In spot market, Crude palm oil gained ┬áby 6.8 Rupees to end at 1151.8 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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