Crude palm Oil on MCX settled up by 0.66% at 517.1 tracking firmness in spot demand and overseas prices on rising exports and tracking stronger-performing soyoil in US and China. Palm oil shipments from Malaysia rose 20-25 percent between April 1-10 from the corresponding period last month, according to cargo surveyor data on Monday However, the data from the MPOB showed end-stocks for March rose 6.5% from February to 1.55 mt. Output surged 16.3% to 1.46 mt, the first monthly gain since September and the strongest month-on-month rise in over a year. There is expectation of higher stock levels of edible oil in the country as oilseed crushing is going on in full swing. Moreover, government lowered the base import price of CPO by $6 to $747 per tonnes for 1st half of April. And cargo surveyor SGS reported palm oil and product exports in April 1-10 up 25% over the same period last month, at 312,489 tonnes. But the rise in exports was more than outweighed by booming production. March output was reported at 1.46m tonnes, the highest seen for the month of on MPOB records going back to 2008. Production was up a hefty 20% year-on-year, and up 16.3% from February levels, and comfortably bean analyst expectations, which pointed to 1.38m tonnes. Production in South-East Asia is expecting to bounce back sharply this season, due to better conditions. Technically market is under short covering as market has witnessed drop in open interest by -2.64% to settled at 6051 while prices up 3.4 rupees, now CPO is getting support at 512.2 and below same could see a test of 507.3 level, And resistance is now likely to be seen at 520, a move above could see prices testing 522.9.
CPO trading range for the day is 507.3-522.9.
Crude palm oil gains tracking firmness in spot demand and overseas prices on rising exports.
Palm oil shipments from Malaysia rose 20-25 percent between April 1-10 from the corresponding period last month.
There is expectation of higher stock levels of edible oil in the country as oilseed crushing is going on in full swing.
Crude palm oil prices in spot market dropped by 4.60 rupees and settled at 529.40 rupees.