Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 4.19% to settled at 4527 while prices down 0.4 rupees.
Now MCX Crude Palm Oil is getting support at 1097.3 and below same could see a test of 1093.2 levels, and resistance is now likely to be seen at 1105.1, a move above could see prices testing 1108.8.
Crude Palm Oil yesterday settled down by 0.04% at 1101.4 due to a smaller-than-expected decline in November stockpile.
Malaysia’s palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, Malaysian Palm Oil Board (MPOB) data showed. Crude palm oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said.
Malaysia’s palm oil exports during Dec. 1-10 was unchanged from the same period in November at 544,059 tonnes, cargo surveyor Amspec Agri said.Planters in the world’s second-largest producer are racing to adjust to an acute shortage of workers due to the coronavirus and sharply higher costs of recruitment as they make changes in response to accusations of forced labour.
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. In spot market, Crude palm oil dropped by 4.7 Rupees to end at 1107.5 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1093.2-1108.8.
–Crude Palm Oil ended with small losses due to a smaller-than-expected decline in November stockpile.
–Malaysia’s palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, MPOB data showed.
–Crude Palm Oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said.
–In spot market, Crude palm oil dropped by -4.7 Rupees to end at 1107.5 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online