Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 16 July 2012

Crude-Palm-Oil Crude Palm Oil yesterday traded with the positive node and settled 0.18% up at 564.7 as concerns over tighter global oilseed supply came back into play, while traders were mostly relieved that China's gross domestic product data landed in line with forecasts. The market shrugged off forecasts of weekend rain in parts of the U.S. Midwest, investors betting on lower soybean output after the U.S. Department of Agriculture cut yield estimates in its Thursday report. India imported 124,125 tonnes of refined palm oil in June, down nearly 25 percent from May and broadly in line with quantities expected according to the average of a poll, data released by a leading trade body showed. Total vegetable oil imports in June were 783,315 tonnes, down 12.7 percent from 896,921 tonnes in the previous month, the data from the Solvent Extractors' Association (SEA) showed. 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 563.2 after opening at 563.9, and finally settled at 564.7. For today's session market is looking to take support at 562.9, a break below could see a test of 561.2 and where as resistance is now likely to be seen at 566.7, a move above could see prices testing 568.8.