Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 0.91% to settled at 4668 while prices down 3.5 rupees
Now MCX Crude Palm Oil is getting support at 1119.8 and below same could see a test of 1115.2 levels, and resistance is now likely to be seen at 1129.4, a move above could see prices testing 1134.4.
Crude Palm Oil yesterday settled down by 0.31% at 1124.4 as expectations of higher end stocks for October and rumours of poorer exports weighed on sentiment.
However downside seen limited as supply constraints due to the rainy season and strength in rival oils supported the market.
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Prices are seen rising as the rainy season and coronavirus-linked labour shortage are slowing output in Malaysia.
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. In spot market, Crude palm oil dropped by 6.3 Rupees to end at 1140.2 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1115.2-1134.4.
–Crude Palm Oil dropped as expectations of higher end stocks for October and rumours of poorer exports weighed on sentiment.
–However downside seen limited as supply constraints due to the rainy season and strength in rival oils supported the market.
–The Southern Peninsula Palm Oil Millers’ Association estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia.
–In spot market, Crude palm oil dropped by 6.3 Rupees to end at 1140.2 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
