Commodity Trading Tips for Crude palm Oil by Kedia Commodity
Commodity Trading Tips for Crude palm Oil by Kedia Commodity

Crude palm oil ended with flat node amid weak demand in export market. Malaysia palm oil exports during Mar 1-25 fell by around 1.2% compared to a month earlier on subdued demand from China, data showed. Malaysia palm oil exports fell to 896,621 tons during Mar 1-25 compared to 907,078 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Mistry expected price to test MAY 3,000 in April-May on lower stock and slow pace of recovery in production. Mistry maintains forecast that 3rd-month Bursa Malaysia Derivatives futures at MYR 2,500 per ton, or FOB olein at $620 per ton, are strong supports in the fourth quarter of 2017. Further, he maintained Malaysian 2017 production estimates at 19.5 million tons and for Indonesian output at 33.5-34 million tons. Government has cut base import prices (tariff charges) for palm products in India for the third successive fortnight making prices cheaper to import. For 2 nd half of March, the prices of CPO and RBD palm oil cut by $31 a ton to $753 and $38 a ton to $768 respectively. Malaysia is still negotiating with Indonesia on standardising the export duty structure for crude palm oil (CPO). Malaysia hopes to work together with Indonesia on standardising the price structure, Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong told. Technically market is under fresh buying as market has witnessed gain in open interest by 5.47% to settled at 6744, now CPO is getting support at 510.3 and below same could see a test of 508 level, And resistance is now likely to be seen at 514.7, a move above could see prices testing 516.8.

Trading Ideas:

# CPO trading range for the day is 508-516.8.

# Crude palm oil ended with flat node amid weak demand in export market.

# Malaysia palm oil exports during Mar 1-25 fell by around 1.2% compared to a month earlier on subdued demand from China, data showed.

# Malaysia is still negotiating with Indonesia on standardising the export duty structure for crude palm oil.

Crude palm oil prices in spot market gained by 1.20 rupees and settled at 539.40 rupees.




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