daily trading calls

Crude palm Oil on MCX settled up by 1.36% at 558.1

Posted on Nov 08, 2017 by kc_admin

Crude palm Oil on MCX settled up by 1.36% at 558.1 tracking firmness in spot demand amid expectation over further import duty hike by the government. Hope of higher output in Indonesia and easing supply worries in Malaysia limited the upside. The World Vegetable Oil supply will grow by one million tons more than demand growth but most of increment supply will happen after June, so March-June Malaysia Palm Oil stocks will be tightest, boosting prices higher. GAPKI’s executive director said Indonesian palm oil exports to rise to 29 million tons next year from 28 million tons in 2017. Domestic consumption is also seen rising moderately in 2018 to 10 million tons from 9.7 million tons this year. Malaysia’s palm oil output is expected to have risen to a two-year peak in October, lifting inventories to their highest since January 2016, boosted by holiday season demand and a higher number of working days. Last month’s output in the world’s second-largest producer of the oil after Indonesia is forecast to rise 9.4 percent from September to 1.95 million tonnes, according to the median response of eight traders, planters and analysts surveyed – the biggest monthly total since October 2015. The rise likely contributed to gains in end-stocks pegged at 2.2 million tonnes, up 9.6 percent from September, in a fourth straight month of gains. Technically market is under short covering as market has witnessed drop in open interest by -1.96% to settled at 4911 while prices up 7.5 rupees, now CPO is getting support at 553.4 and below same could see a test of 548.8 level, And resistance is now likely to be seen at 560.8, a move above could see prices testing 563.6.

Trading Ideas:

#             CPO trading range for the day is 548.8-563.6.

#             Crude palm oil gains tracking firmness in spot demand amid expectation over further import duty hike by the government.

#             Hope of higher output in Indonesia and easing supply worries in Malaysia limited the upside.

#             The World Vegetable Oil supply will grow by one million tons more than demand growth but most of increment supply will happen after June.

Crude palm oil prices in spot market gained by 0.80 rupees and settled at 544.00 rupees.