Crude Oil market under long liquidation; Support seen at 4734
Silver market under fresh selling; Support seen at 37765
MCX Gold likely to trade between 29490-29788 levels
NCDEX Mustard Seed under fresh buying; Support seen at 4127
NCDEX Ref.Soya Oil under fresh buying; Resistance seen at 738
Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 2.55% to settled at 7408 while prices up 1.5 rupees.
Now MCX Crude Palm Oil is getting support at 591.7 and below same could see a test of 589.9 level, And resistance is now likely to be seen at 595.3, a move above could see prices testing 597.1.
Crude Palm Oil on MCX settled up by 0.25% at 593.6 tracking firmness in spot demand and overseas prices tracking strength in related edible oils. Moreover, cut in tariff value for the palm oil imports and steady physical demand is keeping the prices in a range.
The base import price of crude palm oil has been cut to $578 per tn from $614 per tn earlier. Moreover, govt cuts RBD palm oil base import price to $599/tn vs $629/tn. Based on global prices and fluctuations in foreign exchange rates, the government revises base import prices every fortnight.
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According to SEA monthly update, palm oil imports into the country were down 47% and 26% for CPO and RBD Palmolein in June compared to last year. Meanwhile, earlier rising production is expected to contribute to growing inventories and weighing on prices.
Exports of palm oil products from Indonesia, the world’s biggest exporter, rose 7.5% in June from a year earlier according to Indonesia’s palm oil association (GAPKI). Malaysian palm oil prices are set to average 2,410 ringgit ($591) a tonne in 2018, the Malaysian Palm Oil Council (MPOC) forecast, down about 14 percent from last year’s average prices.
The MPOC also forecast palm oil output in Malaysia, the world’s second largest producer, at 20.3 million tonnes in 2018, above last year’s 19.92 million tonnes due to better yields.
Trading Ideas:
–Crude Palm Oil trading range for the day is 589.9-597.1.
–Crude Palm Oil ended with gains tracking firmness in spot demand and overseas prices tracking strength in related edible oils.
–Exports of palm oil products from Indonesia, rose 7.5% in June from a year earlier according to Indonesia’s palm oil association.
–Malaysian palm oil prices are set to average 2,410 ringgit ($591) a tonne in 2018, the MPOC forecast, down about 14 percent from last year’s average prices.
–Crude palm oil prices in spot market gained by 0.20 rupees and settled at 590.30 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
