Commodity Trading Tips for Crude palm Oil by Kedia Commodity

Crude palm Oil on MCX settled down by -1.74% at 512.6 tracking weakness in spot demand and overseas prices on hope of recover in Malaysian palm oil output. Prices of the oil will be down as Malaysia Palm Oil reserves are expected to rise during March month. Inventories are expected to rise by 4.1% to 1.52 million tons in March as compared to previous month while production estimated to increase by 9.5% to 1.38 million tons from February. Palm oil refiners in Malaysia are boosting purchases of Indonesian crude palm oil to meet festive demand as there is tight local supply. After a year of tight market balances, there is widespread expectation of augmented production around the world, modest demand growth and gradually expanding inventory. Malaysian Palm Oil Council (MPOC) chief executive officer said he was upbeat of a surge in China’s palm oil imports, especially from the coastal and Inner regions, backed by promotional activities and outreach activities in the country. Malaysian palm oil planters say they are bracing for a severe labour shortage, with workers who typically stream over the border from neighbouring Indonesia to harvest crops staying away due to the weaker ringgit and increased opportunities at home. Malaysian palm oil planters estimate about 70 percent of the industry's workforce comes from Indonesia, with staff traditionally drawn by the chance to earn higher wages in a culture with many similarities to their own. Technically market is under long liquidation as market has witnessed drop in open interest by -4.75% to settled at 6544 while prices down -9.1 rupees, now CPO is getting support at 508.4 and below same could see a test of 504.3 level, And resistance is now likely to be seen at 518.3, a move above could see prices testing 524.1.

Trading Ideas:

CPO trading range for the day is 504.3-524.1.

Crude palm oil dropped tracking weakness in spot demand and overseas prices on hope of recover in Malaysian palm oil output.

Prices of the oil will be down as Malaysia Palm Oil reserves are expected to rise during March month.

Inventories are expected to rise by 4.1% to 1.52 million tons in March as compared to previous month.

Crude palm oil prices in spot market dropped by 4.60 rupees and settled at 533.40 rupees.




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