Technically Crude Palm Oil market is under short covering as market has witnessed drop in open interest by 6.23% to settled at 4230 while prices up 6.2 rupees.
Now MCX Crude Palm Oil is getting support at 1127.4 and below same could see a test of 1121.2 levels, and resistance is now likely to be seen at 1138.9, a move above could see prices testing 1144.2.
Crude Palm Oil yesterday settled up by 0.55% at 1133.5 underpinned by estimates of weaker production and higher exports during the first half of November. Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather.
The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before. Exports of Malaysian palm oil products during the same period rose between 10% and 29% month-on-month, according to data by cargo surveyors.
India’s palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said.
The country’s vegetable oil imports for the 2020/21 marketing year ended on Oct. 31 stood at 13.53 million tonnes, a tad higher than 13.52 million tonnes a year ago, the Solvent Extractors’ Association of India (SEA) said.
Output in the world’s second-largest palm oil producer is also expected to slow as the peak production season has ended, while the monsoon brings heavy rainfall.
Indonesia, the world’s biggest palm oil maker, exported 2.89 million tonnes of the vegetable oil in September, including refined products, data from Indonesia Palm Oil Association (GAPKI) showed. In spot market, Crude palm oil gained by 7.7 Rupees to end at 1130.9 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1121.2-1144.2.
–Crude Palm Oil gains underpinned by estimates of weaker production and higher exports during the first half of November.
–Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather.
–The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before.
–In spot market, Crude palm oil gained by 7.7 Rupees to end at 1130.9 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
