Crude palm oil futures eased to Rs 758.80 per 10 kg on September 29 as participants increased their short position as seen by the open interest. Malaysian palm oil futures slipped 1.11 percent to trade at 2,830 Ringgits on Bursa Malaysia Bhd.
Crude palm oil price fell from higher levels following profit booking in Soy oil after good gains and market expectation of increased output in Indonesia and Malaysia.
Extremely dry weather, lower use of fertiliser due to weak CPO price in first few months of this year and persistent labour worries are likely to keep palm oil output near 19 million tons in 2019-20 season, which is 9 percent down from the previous year.
In the futures market, Crude Palm Oil (CPO) for October delivery touched an intraday high of Rs 767 and an intraday low of Rs 757.90 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 710.40 and a high of Rs 818.50.
CPO delivery for September slipped 2.7, or 0.35 percent at Rs 758.80 per 10 kg at 15:57 hours IST with a business turnover of 4,739 lots.
CPO delivery for November declined Rs 4, or 0.53 percent at Rs 754.80 per 10 kg with a business volume of 1,722 lots.
The value of September and October’s contracts traded so far is Rs 128.75 crore and Rs 24.59 crore, respectively.
The optimism of good demand of edible oil in India is likely to hep domestic palm oil avoid the sharp drop in coming days but looking at weak prospects of BMD CPO, we expect MCX CPO to trade range-bound with negative bias for today, said Kotak Securities.
As of September 28, MCX CPO was trading at a discount of Rs 17 from import cost at Kandla port.
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