CPO yesterday settled up 0.32% at 497.3 tracking firmness in spot demand as prospects for tighter supplies supported 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. 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 on July 16. 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. The Bursa Malaysia market will be closed from the second half of Wednesday and will reopen again on Monday, August 12. Markets in Indonesia, the world's largest palm oil producer, are closed for the whole of this week. technically market is under fresh buying as market has witnessed gain in open interest by 4.24% to settled at 5238 while prices up 1.6 rupee, now CPO is getting support at 493.5 and below same could see a test of 489.8 level, And resistance is now likely to be seen at 499.8, a move above could see prices testing 502.4.
Trading Ideas:
CPO trading range for the day is 489.6-502.2.
Ref soyoil ended with losses on estimates of higher oilseed production in the current season due to increased acreage.
Cautious buying is seen in the spot market due to sufficient soybean stocks in the mandis of Madhya Pradesh.
Soymeal prices were down as many soybean growing areas witnessed open weather.
Crude palm oil prices in spot market gained by Rs 0.30 and settled at 503.80 rupees.
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