Crude palm oil futures ease to Rs 930.90 per 10 kg in afternoon trade

Crude palm oil futures traded lower at Rs 930.90 per 10 kg on January 21. Malaysian palm oil futures jumped 2.08 percent to settle at 3,288 Ringgits on Bursa Malaysia Bhd.

Crude palm oil traded in the negative territory in the afternoon session after an almost flat opening with positive bias.

Malaysian Palm Oil Board (MPOB) reported Malaysia’s crude palm oil stock declined 10.6 percent to 1.33 million tons in December. The total palm oil stock in the country fell 19 percent on month to 1.26 million tons.

Malaysia’s palm oil export for the period January 1-20 dropped 43.3 percent on the month at 572,910 tons, according to data from cargo surveyor SGS (Malaysia).

Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research said, “CPO prices fall in the morning session however sharp recovery and price come back above 50 days SMA which is placed at Rs 933.20 levels. Technically, CPO has support at Rs 897 for the day whereas resistance is seen at Rs 942 levels.”

In the futures market, Crude Palm Oil (CPO) for January delivery touched an intraday high of Rs 938 and an intraday low of Rs 926.70 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 798.10 and a high of Rs 1,010.

CPO delivery for December slipped Rs 2.30, or 0.25 percent at Rs 930.90 per 10 kg at 15:27 hours IST with a business turnover of 2,468 lots.

CPO delivery for February slides Rs 0.30, or 0.03 percent at Rs 928.80 per 10 kg with a business volume of 5,267 lots.

The value of January and February contracts traded so far is Rs 98.34 crore and Rs 171.34 crore, respectively.

Geojit Financial Services Limited said, “We expect to see selloffs to Rs 920 or even Rs 900 levels if price stays below Rs 930. However, mild short-covering rallies cannot be ruled out.”

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