Crude palm oil futures gain 0.82% to Rs 747 per 10 kg in afternoon trade

Crude palm oil futures rose to Rs 747 per 10 kg on August 6 as participants increased their long position. Malaysian palm oil futures for October settled with a loss of 2 percent on August 5 on Bursa Malaysia Bhd.

Lower output expectations in Indonesia and Malaysia and 6-7 percent rise Malaysian palm oil exports in July have lifted palm oil futures by more than 16 percent last month.

In the futures market, crude palm oil (CPO) for August delivery touched an intraday high of Rs 747.20 and a low of Rs 739 per 10 kg on the Multi-Commodity Exchange (MCX). So far in the current series, CPO has touched a low of Rs 553 and a high of Rs 754.90.

CPO futures for August delivery gained Rs 6.10, or 0.82 percent, to Rs 747 per 10 kg at 15:49 hours IST on a business turnover of 4,662 lots. The same for September rose Rs 5.60, or 0.76 percent at Rs 741.50 per 10 kg on a business volume of 3,106 lots.

The value of August and September contracts traded so far is Rs 90.92 crore and Rs 17.37 crore, respectively.

Kotak Securities expects MCX CPO to trade rangebound with a positive bias on August 6.

As of August 4, MCX CPO August was trading at a discount of Rs 23 from import cost at Kandla port.