Commodity Trading Tips for Crude Palm Oil by Kedia Commodity

Ajay Kumar Kedia 31 July 2013

Commodity Trading Tips for Crude Palm Oil by Kedia Commodity CPO yesterday settled up 2.65% at 491.3 tracking firmness in spot demand and overseas prices as investors hoped for an improvement in exports in the second half of July. Cargo surveyors will release data on Malaysian palm oil shipments for the whole month of July on Wednesday. While the exports are expected to fall, sources say the declines could be less steep than initially estimated. Government's recent decision to impose lower import duty on crude palm oil may have affected the crude palm oil prices. Higher than expected crude palm oil and palm oil stocks, hopes of larger inventories in Malaysia and Indonesia also weighed on prices. Exports of Malaysian palm oil products from July 1 to 25 fell 7 percent to 1,085,392 tons when compared to 1,167,266 tons shipped during June 1 to 25 period, as per industry sources. Indonesia has set export tax for palm oil at 10.5% for August, unchanged from July's 10.5%.India's refined palm oil imports declined 20.7 percent in June to 296, 230 tons from a record high of 373,837 tons in May. Last week, crude palm oil and palm oil prices recorded a weak trend in the global market on speculation that the upcoming palm oil production season may cause to build large palm oil inventories in Malaysia, the world's second largest palm oil producer after Indonesia. Technically market is under short covering as market has witnessed drop in open interest by -6.02% to settled at 4733 while prices up 12.7 rupee, now CPO is getting support at 481.1 and below same could see a test of 470.8 level, And resistance is now likely to be seen at 496.6, a move above could see prices testing 501.8.