Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 4 September 2014

Crude-Palm-Oil CPO settled up 0.18% at 442.2 driven by rising demand in spot market. Further, lower arrivals from the major producing areas too supported crude oil prices uptrend. However, concerns about higher edible oil supplies, capped some gains. Crude palm oil imports by India & subcontinent jumped to 502,599 tons in August compared to 367,895 tons a month earlier, data release by Intertek showed. Prices dropped in last few weeks amid an outlook for rising global supplies of edible oils and as forecasters saw a reduced chance for the onset of El Nino, which can disrupt supplies from Indonesia and Malaysia, the biggest producers. Palm oil imports by the European Union rose to a record 3.37 million metric tons in the first half, about 3 percent higher than the same time in 2013. While increasing EU demand didn’t make up for an 11 percent drop in the first half in imports by India, Pakistan and China, lower stockpiles especially in India mean trade volumes may soon rebound, according to the report. China’s imports of palm oil in the first half totaled 3.38 million tons, little changed from the same time last year, Oil World said. The country’s imports of biodiesel increased more than tenfold to 510,000 tons in January through July, Oil World said. Production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year. Technically market is under short covering as market has witnessed drop in open interest by -2.33% to settled at 2428, now CPO is getting support at 438.6 and below same could see a test of 434.9 level, And resistance is now likely to be seen at 446.1, a move above could see prices testing 449.9.