Short covering seen in MCX Zinc
MCX Gold may trade in a range between 30423-30805
MCX Aluminium under fresh buying; Support seen at 143.3
MCX Mentha Oil under short covering
NCDEX Castor under fresh buying; Support seen at 4371
Technically MCX Crude Palm Oil is getting support at 627.7 and below same could see a test of 625.5 level, And resistance is now likely to be seen at 632.8, a move above could see prices testing 635.7.
Crude Palm Oil on MCX settled down 0.4% at 629.8 tracking weak palm oil in Malaysia and lower tariff value for July. The government has slashed the base import price of CPO and RBD Palmolein by $26to $618 per ton and $27 to $646 per ton respectively.
Indonesia the world’s second-largest palm oil producer, kept its crude palm oil export tax at 5 percent in July, the Malaysian Palm Oil Board said in a statement, citing the national customs department.
Malaysia resumed export taxes on crude palm oil in May at a 5 percent rate, after suspending it for four months at the start of the year to increase demand and boost prices. According to SEA monthly update, palm oil imports into the country were down 33% and 46% for CPO and RBD Palomlein in May compared to last year.
India’s palm oil imports dropped in May due to higher taxes on shipments while weaker rupees making imports expensive. Palm oil accounts for the bulk of the total edible oil imported annually, with most of the commodity imported from Indonesia and Malaysia.
India’s palm oil imports plunged 38 per cent from a year earlier to their lowest in nearly four and a half years, as higher import tax on the tropical oil made it more expensive, a trade body said. However, the fall in import of palm oil has been offset by much higher import of other varieties of oil like soyoil, rapeseed oil and sunflower oil, as duty on these soft oils is lower.
Trading Ideas:
–Crude Palm Oil trading range for the day is 625.5-635.7.
–Crude Palm Oil ended with losses tracking weak palm oil in Malaysia and lower tariff value for July.
–The government has slashed the base import price of CPO and RBD Palmolein by $26to $618 per ton and $27 to $646 per ton respectively.
–India’s palm oil imports plunged 38 per cent from a year earlier to their lowest in nearly four and a half years.
–Crude Palm Oil prices in spot market gained by 0.70 rupees and settled at 635.30 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
