MCX Crude Palm Oil likely to move in a range of 562.4-571.4

Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 4.97% to settled at 5107 while prices down 0.3 rupees.

Now MCX Crude Palm Oil is getting support at 564.3 and below same could see a test of 562.4 level, And resistance is now likely to be seen at 568.8, a move above could see prices testing 571.4.

Crude Palm Oil on MCX settled down by 0.05% at 566.1 tracking weakness in spot demand after prices seen supported on the back of expectations of easing inventory levels.

Indonesia’s 2018 exports of palm oils, including oleochemical and biodiesel shipments, rose 8 percent from a year earlier to 34.6 million tonnes, the Indonesian Palm Oil Association (GAPKI) said.

Crude Palm Oil output last year rose 12.5 percent to 43 million tonnes, GAPKI chairman told. Meanwhile, domestic use of palm oil “jumped significantly” to 13.4 million tonnes, due to implementation of a wider biodiesel mandate, as well as for food demand.

Palm oil inventories in December rose 6.9 percent to 3.21 million tonnes, the highest in nearly two decades. Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for January rose 14.7 percent while independent inspection company AmSpec Agri Malaysia reported a 15.5 percent increase.

The government increased tariff price of crude palm oil by $41 to $556 per tn and $16 per ton for refined, bleached and deodorised palm oil for the Second half of January.

ndonesian palm oil prices are also forecast to rise to as high as $600 a tonne amid rising demand from the food and energy sector, slowing production growth and declining global stockpiles.

Malaysian palm oil shipments during Jan. 1-20 rose 11.8-12.9 percent from a month earlier, according to cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia.

Trading Ideas:
–Crude Palm Oil trading range for the day is 562.4-571.4.
–Crude Palm Oil dropped tracking weakness in spot demand after prices seen supported on the back of expectations of easing inventory levels.
–Indonesia’s 2018 exports of palm oils, including oleochemical and biodiesel shipments, rose 8 percent from a year earlier to 34.6 million tonnes.
–Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for January rose 14.7 percent.
–Crude Palm Oil prices in spot market dropped by 2.80 rupees and settled at 561.60 rupees.

Courtesy: Kedia Commodities