Crude Palm oil yesterday traded with the positive node and settled 0.12% up at 574.6 despite of uncertainty in global market as investors bet a summit of European leaders later this week is unlikely to resolve the region's lingering debt crisis soon. Losses were limited in a quiet trading session, as hot and dry weather in the United States crimped the soybean crop, fuelling expectations of tighter oilseed supply that may eventually lift palm oil prices. Demand remains healthy with Malaysian palm oil exports showing an uptrend for the first 25 days of the month. Market expects the trend to continue on last-minute buying leading up to the Muslim fasting month starting in end-July. In other vegetable oil markets, US soyoil for July delivery inched up 0.3 percent in late Asian trade. Malaysian palm oil exports grew 4.4% to 1.2 million tonnes in the first 25 days of the month from a month ago, said cargo surveyor, backed by higher shipment to China, India and Pakistan. Exports of palm oil from the world's second-largest producer will likely remain strong for the rest of June, as buyers stock up before the Muslim fasting month of Ramadan begins July 20. Demand typically rises in the Middle East, Pakistan and Bangladesh during this period, when Muslims break their fasts in the evening with feasts. In yesterday's trading session Crude Palm oil has touched the low of 570.6 after opening at 574.7, and finally settled at 574.6. For today's session market is looking to take support at 571.8, a break below could see a test of 569 and whereas resistance is now likely to be seen at 576.2, a move above could see prices testing 577.8.
CPO trading range for the day is 569-577.8.
Crude Palm oil settled up despite of uncertainty in global market as investors bet a summit of European leaders
Malaysian palm oil exports grew 4.4% to 1.2mts in the first 25 days of the month from a month ago,
A shipping executive in Kuala Lumpur tipped palm oil shipments to reach 1.46 million-1.50mts in June.
Demand typically rises when Muslims break their fasts in the evening with feasts.
BUY CPO JUNE ABV 574 SL 571 TGT 576.50-579.50-582. MCX
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell
- Huge scope for improving Indian shale gas estimates: ONGC
- HPCL Visakha refinery suffers major fire due to short circuit