Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 2 September 2014

Crude-Palm-Oil CPO settled down -0.45% at 437.6 on ample supplies from the major producing belts along with rising production. Domestically demand for edible oil is expected to be robust for festivities such as Ganesh Chaturthi which will be celebrated this week and Navratri next month. India’s Palm oil imports are cut 200,000 tons to 8.6 million on weaker than expected purchases. Palm also slumped as demand for biofuels missed expectations, forecasts for an El Nino weather pattern, which can disrupt supplies, were scaled back. Global ending stockpiles of palm oil will increase 10 percent to 8.7 million tons in 2014-2015, according to a forecast from the USDA. Malaysian palm oil exports fell 15.2% to 570,761 tons during Aug 1-15 compared to 673,463 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed. India's palm oil imports rose by a tenth to 657,750 tonnes in July from a month earlier, data from a leading trade body showed, as buyers boosted shipments to meet a big gap in local supplies amid poor monsoon rains. 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. Malaysian palm oil exports fell 15.2% to 570,761 tons during Aug 1-15 compared to 673,463 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed. Technically market is under long liquidation as market has witnessed drop in open interest by -2.54% to settled at 2568 while prices down -2 rupee, now CPO is getting support at 434.2 and below same could see a test of 430.7 level, And resistance is now likely to be seen at 441.4, a move above could see prices testing 445.1.