Commodity Trading Tips for Crude Palm oil by KediaCommodity

Commodity Trading Tips for Crude Palm oil by KediaCommodityCrude Palm oil yesterday traded with the positive node and settled 0.21% up at 421.7 tracking gains in Malaysian palm oil which rose as signs of China's economic revival fuelled hopes of stronger commodity demand. Malaysia will produce at least 19 million tonnes in 2013 and Indonesian production will be between 29.5 and 30 million tonnes. Between Malaysia and Indonesia CPO production will expand 2.5 to 3 million tonnes. CPO production in the Second Half of 2013 and particularly in the months of September to December 2013 is likely to be at a new all-time high, possibly creating new monthly production records in both countries. Current Indonesian CPO production is running ahead of expectation. Indonesian production is peaking this month in November and looks like exceeding earlier estimate of 27.5 million tonnes for 2012. Malaysia will produce 18.4 million tonnes in 2012. Stronger buying from Europe and India lifted Malaysian palm oil exports in November compared to a month ago. In yesterday's trading session Crude Palm oil has touched the low of 418 after opening at 422.5, and finally settled at 421.7. For today's session market is looking to take support at 417.5, a break below could see a test of 413.2 and where as resistance is now likely to be seen at 426.5, a move above could see prices testing 431.2.

Trading Ideas:

CPO trading range for the day is 413.23-431.23.

Crude palm oil ended higher tracking gains in overseas as signs of China's economic revival fuelled hopes of stronger demand

Malaysia will produce at least 19 mln tns in 2013 and Indonesian production will be between 29.5 and 30 mln tns

Stronger buying from Europe and India lifted Malaysian palm oil exports in November compared to a month ago.

Crude palm oil prices in spot market dropped by 4.10 rupees and settled at 415.40 rupees.