Commodity Trading Tips for Crude palm Oil by Kedia Commodity

Crude palm Oil on MCX settled down by -0.13% at 535.2 tracking weakness in spot demand and weak international prices. However downside seen limited as supply shortage worries from Indonesia following speculation of returning of el-nino will support prices . Palm oil stockpiles in Indonesia slumped in January after production in the world's largest oil producer, declined and exports increased. Reserves fell to 2.86 million tons from a revised 3.75 million tons in December, according to data released by the Indonesian Palm Oil Association. Gapki also revised its December figure from 1.07 million tons as it collected more data from producers, the group said. The imports of palm oil during Feb are higher compared to previous month which implies that the consumption demand is good in the country. Recently, government has cut base import prices (tariff charges) for palm products in India for the third successive fortnight making prices cheaper to import. Palm oil exports data edged up 1.4% for Feb. 1-15 according to cargo surveyor Intertek Testing Services. The market was also supported by concerns about a potential El Nino weather pattern returning this year. Lower production (fell 1.4 % to 1.26 mt)and inventories (fell to a sixyear low of 1.46 mt, down 5.3 % on month) in Feb also bullish for the palm oil prices. Technically market is under long liquidation as market has witnessed drop in open interest by -6.46% to settled at 2636 while prices down -0.7 rupees, now CPO is getting support at 531.5 and below same could see a test of 527.7 level, And resistance is now likely to be seen at 538.9, a move above could see prices testing 542.5.

Trading Ideas:

# CPO trading range for the day is 527.7-542.5.

# Crude palm oil prices dropped tracking weakness in spot demand and weak international prices.

# Palm oil stockpiles in Indonesia slumped in January after production declined and exports increased.

# Reserves fell to 2.86 million tons from a revised 3.75 million tons in December, according to data released by the Indonesian Palm Oil Association.

Crude palm oil prices in spot market gained by 1.00 rupees and settled at 541.10 rupees.