Crude Palm Oil yesterday traded with the negative node and settled -0.39% down at 613.9 tracking weakness in spot market amid weak overseas market as election results in Greece and France threatened to undermine austerity measures in place to prevent the euro zone debt crisis from spreading. Higher palm oil production in Malaysia, the world's No2 supplier of the vegetable oil, also weighed on the market, although limited supply of competing soyoil. Palm oil fundamentals look healthy as the latest export data showed that shipments jumped by almost 10 percent, signalling robust demand for the edible oil from Asia. Market players have shifted their focus to exports for the first 10 days of May, in which an improvement could boost demand outlook for the edible oil. Traders are also concerned with the level of palm oil stocks in No.2 producer Malaysia, with a higher production potentially easing off the effects of higher exports eating into stocks. Exporters tip outbound palm oil shipments to rise further in May due to higher demand from India, China and Europe. April exports rose around 9%-10% to around 1.35 million tons, according to estimates by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. In yesterday's trading session Crude Palm oil has touched the low of 607.4 after opening at 614.2, and finally settled at 613.9. For today's session market is looking to take support at 609.5, a break below could see a test of 605 and where as resistance is now likely to be seen at 616.3, a move above could see prices testing 618.6.
CPO trading range for the day is 605.03-618.63.
Crude palm oil ended lower tracking weakness in spot market amid weak overseas market
Higher palm oil production in Malaysia also weighed on the market
Exporters tip outbound palm oil shipments to rise further in May due to higher demand
Crude palm oil prices in spot market dropped by 3.60 rupees and settled at 612.90 rupees.
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