Crude Palm Oil yesterday traded with the negative node and settled -0.37% down at 564.7 tracking weak overseas market as expectations of higher stocks in No.2 producer Malaysia erased higher risk appetite on better-than-expected U.S. jobs data. Malaysian palm oil exports fell in July from a month ago, reflecting slowing demand from top food buyers China and India, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance. Market participants remain wary that weakness in export demand, at a time when palm oil production in Southeast Asia is seasonally higher, will drive up stockpiles to 2 million tons in coming months. Planters are tipping end-July stockpiles to have reached 1.85 million-1.90 million tons, rising from a 14-month low of 1.7 million tons at the end of June. Still, concerns about a developing El Nino weather event, usually associated with warmer temperatures and scant rainfall in Southeast Asia, could check price declines. The weather event could affect palm oil yields in the January-March quarter next year, which will "cut into peak production and demand period. In yesterday's trading session Crude Palm oil has touched the low of 563.3 after opening at 565, 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 561.1 and where as resistance is now likely to be seen at 566.9, a move above could see prices testing 569.1.
CPO trading range for the day is 561.1-569.1.
Crude Palm oil yesterday traded with the negative node and settled -0.37% down tracking weak
Malaysian palm oil exports fell in July from a month ago, reflecting slowing demand from China
Planters are tipping end-July stockpiles to have reached 1.85 million-1.90 million tons
Crude palm oil prices in spot market gained by 0.30 rupees and settled at 565.10 rupees.
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- 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