In the futures market, Crude Palm Oil (CPO) for September delivery touched an intraday high of Rs 786.80 and an intraday low of Rs 779.80 per 10 kg on MCX.
Crude palm oil futures were firm at Rs 784.50 per 10 kg on September 15 as open interest suggested an increase in long positions. Malaysian palm oil futures rose 1.69 percent to trade at 2,941 Ringgits on Bursa Malaysia Bhd.
According to Solvent Extractors Association (SEA), CPO import decline 10.08 percent in August to 7.34 lakh tons from 8.24 lakh tons in July.
Sunand Subramaniam, Senior Research Associate, Choice Broking expects, fundamentally for the coming month, MCX CPO futures will remain bullish as rupee is forecast to trade range-bound. Prevailing weaker rupee is projected to increase price disparity and could reduce imports of Palm Oil in India. Moreover, domestic markets are still witnessing the heat of the supply tightness due to limited labour work; as the COVID-19 cases to continue to spur daily.
He said the global demand for Palm Oil has shown recoveries amid increased exports from Malaysia in the global markets especially to the EU and the United States.
In the futures market, Crude Palm Oil (CPO) for September delivery touched an intraday high of Rs 786.80 and an intraday low of Rs 779.80 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 626 and a high of Rs 778.70.
CPO delivery for September gained 1.6, or 0.20 percent at Rs 784.50 per 10 kg at 16:11 hours IST with a business turnover of 3,840 lots.
CPO delivery for October jumped Rs 1.50, or 0.19 percent at Rs 785.40 per 10 kg with a business volume of 2,792 lots.
The value of September and October’s contracts traded so far is Rs 90.03 crore and Rs 69.96 crore, respectively.
Subramaniam expects a bullish trend for the month ahead and recommends buying in MCX Crude Palm Oil October futures at Rs 784.4/kg for a target of Rs 840/kg with a stop loss below Rs 760/quintal on a closing basis.For all commodities-related news, click here