Technically Crude Palm Oil market is under fresh buying as market has witnessed gain in open interest by 7.95% to settled at 4874 while prices up 17.7 rupees.
Now MCX Crude Palm Oil is getting support at 1097.6 and below same could see a test of 1086.2 levels, and resistance is now likely to be seen at 1117.2, a move above could see prices testing 1125.4.
Crude Palm Oil yesterday settled up by 1.62% at 1109.1 as 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.
Indonesia had imposed higher export taxes and levies in the past year, making prices of palm oil – which had already reached record highs this year. “Indonesia’s share of palm oil imports by India earlier was nearly 70-75%,” Mehta told the annual Indonesian Palm Oil Conference.
Indonesia started taxing crude palm oil exports again after three years absence in February last year, while export levies for the edible oil reached a record high of $255 per tonne in February earlier this year.
Indian refiners have been reducing palm oil purchases and raising soybean oil and sunflower oil imports after a steep rally in the tropical oil reduced its discount to rivals. Lower purchases by the world’s top edible oil importer could weigh on palm prices , which have corrected 10% from a record high hit last month.
Soyoil imports in November jumped to around 400,000 tonnes from 217,000 tonnes a month ago, while sunflower oil imports rose to 200,000 tonnes from 117,000 tonnes. In spot market, Crude palm oil gained by 9.1 Rupees to end at 1117 Rupees.
Trading Ideas:
–Crude Palm Oil trading range for the day is 1086.2-1125.4.
–Crude Palm Oil gains as the 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 Indonesia hit record highs in the past year
–Indian refiners have been reducing palm oil purchases and raising soybean oil and sunflower oil imports
–In spot market, Crude palm oil gained by 9.1 Rupees to end at 1117 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
