Crude palm oil futures traded lower at Rs 1,123.80 per 10 kg on March 24 as participants trimmed their position as seen by the open interest. Malaysian palm oil futures slipped 1.12 percent to settle at 3,886 Ringgits on Bursa Malaysia Bhd.
Crude palm oil traded in the negative territory after a flat to a negative opening in the afternoon session.
The agri commodity has been trading higher than 200-day moving averages but lower than the 5, 20, 50 and 100 days’ moving average on a daily chart. The Relative Strength Index (RSI) is at 41.13 which indicates weak momentum in the prices.
The fall in Soy oil from a higher level, crash in crude oil and apprehension of lower edible oil prices in India dragged BMD CPO near 3,930 MYR/ton yesterday.
The anxiety of another wave of coronavirus across the globe, GAPKI reporting Indonesia’s CPO stock (42.5 lakh ton) at a 6-month low level and improved Malaysian palm oil export helped CPO to bounce back this week.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “CPO prices made 10 years high of Rs 1,180. According to the Malaysian Palm Oil Board (MPOB), the CPO price has the potential to remain high based on current positive market sentiments, namely low stock levels, increased palm oil exports and the strengthening price of soybean oil in the world market. CPO price if sustain above Rs 1,180 then price can move towards Rs 1,200 level.”
In the futures market, Crude Palm Oil (CPO) for March delivery touched an intraday high of Rs 1,144.40 and an intraday low of Rs 1,117.90 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 883.10 and a high of Rs 1,180.
CPO delivery for March slipped Rs 21.80, or 1.90 percent at Rs 1,123.80 per 10 kg at 15:02 hours IST with a business turnover of 3,314 lots.
CPO delivery for April eased Rs 9.20, or 0.85 percent at Rs 1,078.70 per 10 kg with a business volume of 5,136 lots.
The value of March and April’s contracts traded so far is Rs 122.91 crore and Rs 165.76 crore, respectively.
Geojit Financial Services Limited said, “Though profit booking witnessed yesterday, sustaining above Rs 1,145 could see more upside moves targeting Rs 1,160-1,170 levels.”
Kotak Securities expects some gain to continue in CPO for time being amid strong cues from Soy oil. But long term outlook remain weak amid the prospect of higher output.
As of March 19, MCX CPO March was trading at a discount of Rs 16 from import cost at Kandla Port.
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