Crude palm oil futures climbed to Rs 717 per 10 kg on July 29 as participants increased their long positions. Malaysian palm oil futures settled with a gain of 1.26 percent on Bursa Malaysia on July 29.
Expectations of lower inventories and lower output concerns in Indonesia and Malaysia due to adverse weather, labour shortage and lower fertiliser usage in the past few months have lifted palm oil by 20 percent during July 1-24.
In the futures market, crude palm oil (CPO) for August delivery touched an intraday high of Rs 720 and a low of Rs 707 per 10 kg on the Multi-Commodity Exchange (MCX). So far in the current series, CPO has touched a low of Rs 553 and a high of Rs 739.10.
CPO futures for August delivery gained Rs 9.50, or 1.34 percent, to Rs 717.80 per 10 kg at 15:35 hours IST on a business turnover of 4,117 lots. The same for September delivery rose Rs 8.90, or 1.27 percent, to Rs 711.50 per 10 kg on a business volume of 2,855 lots.
The value of August and September contracts traded so far is Rs 108.04 crore and Rs 13.51 crore, respectively.
Kotak Securities expects CPO to trade weak this week amid expected weakness in BMD CPO.
As of July 27, MCX August CPO futures was trading at a discount of Rs 2 from its import cost at Kandla port.For all commodities related news, click here