Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 19 February 2014

Crude-Palm-Oil CPO settled up 1.01% at 570 due to firmer comparative oils and expectations of rising demand, coupled with falling exports. Extreme weather conditions in Malaysian and Indonesian plantations, will also hinder output. Intertek Testing Services said that exports of Malaysian palm oil products from Feb. 1 to Feb. 15 rose 31.7 percent. Palm oil prices were supported in hope that global demand may shift to crude palm oil from soybean oil after reports of Brazil draught condition triggered supply concerns. Malaysia palm oil production plunged 9.6% on month in January while inventories dropped 2.6% on month, Malaysian Palm Oil Board (MPOB) data showed. Malaysia, world's second-biggest palm oil producer, crude palm oil output in slumped to 1.5 million tons in January compared to 1.66 million tons in December, the report showed. Palm oil inventories dropped to 1.93 million tons in January compared to 1.98 million tons a month ago. Malaysia, the world's No.2 palm oil producer, has kept its crude palm oil export tax for February unchanged at 5 percent, a government circular showed. India crude palm oil imports in December jumped 8.7% on year to 691,740 tons compared to 636,113 tons a year earlier. India increased import duties on refined edible oils, including palm oil, to 10 percent from 7.5 percent to protect local oilseed growers and refiners against cheaper supplies from major exporters. Technically market is under short covering as market has witnessed drop in open interest by -3.69% to settled at 1618 while prices up 5.7 rupee, now CPO is getting support at 566 and below same could see a test of 562 level, And resistance is now likely to be seen at 572.6, a move above could see prices testing 575.2.