Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 0.33% to settled at 4890 while prices up 1.1 rupees.
Now MCX Crude Palm Oil is getting support at 1105.1 and below same could see a test of 1100 levels, and resistance is now likely to be seen at 1116.6, a move above could see prices testing 1123.
Crude Palm Oil yesterday settled up by 0.1% at 1110.2 as surveys ahead of closely watched Malaysian Palm Oil Board data pegged a decline in November stockpile.
Malaysia’s palm oil stockpile at the end of November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes.
Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes. The likely month-on-month drop in November inventories contrasts with historical trends of an average 4% rise over the past 10 years.
Concerns over the Omicron coronavirus variant hurting demand and stalling economic recovery globally have weighed on prices in recent days, as the spread of the new strain causes alarm worldwide.
Palm oil production will likely remain soft until at least the first half of 2022, which would continue to provide cushion for prices in the coming months.
The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated November production fell 6.8% from the month before.
India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India’s Solvent Extractors’ Association, said. In spot market, Crude palm oil gained by 9.2 Rupees to end at 1126.2 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1107.9-1138.3.
–Crude Palm Oil gained as industry surveys pointed to tightening November production and inventory.
–Malaysia’s November stocks seen down 3.5% m/m
–Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes.
–In spot market, Crude palm oil gained by 3.2 Rupees to end at 1129.4 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
