Commodity Trading Tips for Crude palm Oil by Kedia Commodity

Crude palm Oil settled flat tracking weakness in spot demand and international prices. Prices also remained under pressure on expectations of higher production and ample supplies of rival soybean oil. Moreover, over government has cut base import prices for palm products in India makes prices cheaper to import. For 2nd half of Feb, the prices of CPO and RBD palm oil cut by $8 and $39 a tonnes respectively. Exports of Malaysian palm oil products for Feb 1-20 fell 0.8% to 733,288 tonnes from 739,367 tonnes shipped a month ago. Moreover, Malaysia raised the export tax rate 8.0% a ton in March compared with February's 7.5% levy. Exports of Malaysian palm oil products for Feb 1-20 fell 0.8% to 733,288 tonnes from 739,367 tonnes shipped a month ago. Moreover, Malaysia raised the export tax rate 8.0% a ton in March compared with February's 7.5% levy. European Union Palm oil imports stood at 3.6 million tonnes, down 15 percent from 4.3 million a year earlier, the data showed. Palm oil imports fell for the third consecutive month by 11.56 per cent to 608,762 tonnes in January, on account of good domestic oilseeds production and better availability of edible oils, industry body Solvent Extractors Association (SEA) said. India, the world’s leading vegetable oil buyer, had imported 688,393 tonnes palm oil in January 2015. Technically market is under long liquidation as market has witnessed drop in open interest by -29.95% to settled at 1782 while prices remain unchange0 rupees, now CPO is getting support at 541.5 and below same could see a test of 534.3 level, And resistance is now likely to be seen at 553.6, a move above could see prices testing 558.5.

Trading Ideas:

# CPO trading range for the day is 534.3-558.5.

# Crude palm oil prices settled flat tracking weakness in spot demand and international prices.

# Prices also remained under pressure on expectations of higher production and ample supplies of rival soybean oil.

# Moreover, Malaysia raised the export tax rate 8.0% a ton in March compared with February's 7.5% levy.

Crude palm oil prices in spot market dropped by 4.30 rupees and settled at 550.00 rupees.