Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 9.52% to settled at 3041 while prices up 24.7 rupees.
Now MCX Crude Palm Oil is getting support at 1120.4 and below same could see a test of 1105 levels, and resistance is now likely to be seen at 1144.6, a move above could see prices testing 1153.4.
Crude Palm Oil yesterday settled up by 2.22% at 1135.7 tracking rise in Malaysian prices as 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.
Exports of crude palm oil in 2021 meanwhile are forecast to fall 54.37% from a year earlier to 3.272 million tonnes. In spot market, Crude palm oil gained by 11 Rupees to end at 1135 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1105-1153.4.
–Crude Palm Oil gains tracking rise in Malaysian prices as October export data improved amid tight supply worries.
–The Southern Peninsula Palm Oil Millers’ Association 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
–In spot market, Crude palm oil gained by 11 Rupees to end at 1135 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
