Crude Palm oil yesterday traded with the negative node and settled -1.93% down at 559.3 in line with a weak trend in overseas market on concern that a decline in exports from Malaysia, the world's second-largest grower, may increase inventories. Lower Malaysian palm oil exports for the first 10 days of July also fuelled some of the declines, as the market had largely priced in lower end-stock in June and strong Asian festival demand for the past few weeks. While cargo surveyors said Malaysia's palm oil exports for July 1-10 fell sharply, the market was expecting more orders to come in as the Asian festival season gets underway with China and India celebrating key holidays from September to November. Market players are also on a lookout for the possibility of El Nino returning to the region as dry weather could cut palm oil output, further eating into 14-month low palm oil stocks in June. Malaysia's June Crude Palm Oil output increased by 6.3% from May to 1.47 million metric tonnes. MPOB stated that the end-June palm oil stocks declined by 4.9% from end-May to 1.70 million tonnes, the lowest level in 14 months. Malaysia's June palm oil exports augmented by 8.7% to 1.53 million tonnes. In yesterday's trading session Crude Palm oil has touched the low of 559.3 after opening at 565, and finally settled at 559.3. For today's session market is looking to take support at 557.4, a break below could see a test of 555.5 and where as resistance is now likely to be seen at 563.1, a move above could see prices testing 566.9.
CPO trading range for the day is 555.5-566.9.
Crude palm oil ended weak tracking weakness in overseas market on concern that a decline in exports from Malaysia
Lower Malaysian palm oil exports for the first 10 days of July also fuelled some of the declines
The possibility of El Nino returning to the region as dry weather could cut palm oil output
Crude palm oil prices in spot market dropped by 8.50 rupees and settled at 558.50 rupees.