Technically Crude Palm Oil market is under fresh selling as market has witnessed gain in open interest by 0.54% to settled at 4865 while prices down 2.6 rupees.
Now MCX Crude Palm Oil is getting support at 1153.4 and below same could see a test of 1149.4 levels, and resistance is now likely to be seen at 1162, a move above could see prices testing 1166.6.
Crude Palm Oil yesterday settled down by 0.22% at 1157.4 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.
Acute COVID-19 related labor issues are expected to negatively impact the Malaysian palm oil industry as the Government of Malaysia (GoM) has not finalized a decision to allow foreign workers to work in the sector.
As the price of CPO is expected to stabilize in 2022, CPO export is forecast to recover slightly to 16.5 million tons, though this recovery will continue to be restrained by production limitations. In spot market, Crude palm oil dropped by 5 Rupees to end at 1207 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1149.4-1166.6.
–Crude Palm Oil dropped 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
–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
