MUMBAI: Crude palm Oil settled up by 0.98% at
464.9 on pickup in demand in view of festive season and expectations that
output would drop this month. CPO imports surged 69.30% in August, boosting
supplies, data from SEA of India showed. India's crude palm oil imports jumped
to 640,072 tons in August compared to 378,662 tons for the same period a year
ago, data showed.
Palm oil prices will
decline as the world’s most-used edible oil is no longer competitive against
alternatives even after dropping to the lowest level since 2009. India's palm
oil imports are likely to climb around 4 per cent to 8.25 million tonnes in the
marketing year starting November as poor monsoon rains curb growth in local
edible oil supplies amid a rise in consumption. Malaysia, the world's
second-biggest palm oil producer, could extend duty free exports until the end
of 2014 if prices of the tropical oil remain at current levels. Malaysia has
allowed duty free exports of crude palm oil for September and October.
A further extension
in duty free exports would help it reduce stockpiles but also put pressure on
rival top producer Indonesia to consider similar measures. Both Malaysia and
neighbour Indonesia set export taxes on a monthly basis. Crude palm oil prices
in spot market dropped by 2.60 and settled at 474.00 rupees. Technically market
is under fresh buying as market has witnessed gain in open interest by 2.63% to
settled at 4602 while prices up 4.5 rupee, now CPO is getting support at 463.2
and below same could see a test of 461.4 level, and resistance is now likely to
be seen at 466.6, a move above could see prices testing 468.2.
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