Commodity Trading Tips for Crude Palm Oil by Kedia Commodity

Ajay Kumar Kedia 2 August 2013

CPO yesterday settled up 0.22% at 491.3 tracking firmness in spot demand and overseas demand supported by a recovery in export demand. Prices were supported by a recovery in Malaysia's palm oil shipments that edged up 4-5 percent in July from a month ago, reversing a trend seen in the first half of the month. 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. World palm oil production may increase 4.4 percent to a 58.2 mn tons when compared to the previous season amid higher than expected palm oil production from Indonesia and Malaysia, the Oil World said. However, palm oil reserves in Malaysia fell 37 percent to 1.65 mn tons in June from a record in December, according to the data released by the palm oil board. Technically market is under fresh buying as market has witnessed gain in open interest by 1.1% to settled at 5045 while prices up 1.1 rupee, now CPO is getting support at 488 and below same could see a test of 484.8 level, And resistance is now likely to be seen at 494.6, a move above could see prices testing 498.