Crude palm oil futures eased to Rs 1,210.90 per 10 kg on April 23 after touching a fresh lifetime high of Rs 1,231 during intraday on the MCX. Malaysian palm oil futures slipped 1.54 percent to settle at 3,929 Ringgits on Bursa Malaysia Bhd.
Crude palm oil traded in the negative territory after a gap-down opening in the evening session.
The agri commodity has been trading higher than 5, 20, 50, 100 and 200-days’ moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 66.22, which indicates bullish movement in the prices.
Oil complex once again attained lifetime highs amid positive trade sentiments in domestic as well as overseas trade centres. Profit-taking was noted later due to soaring price levels, said Abhijeet Banerjee, Senior Research Analyst-Agri Research, Religare Broking Ltd. Banerjee advised its clients to buy April CPO unless price fails to trade above Rs 1,215.
Mohit Vyas, Analyst at Kotak Securities said, “Higher than expected stocks reported by MPOB for March month failed to drag BMD CPO much lower as the market expects the scanty stock situation to prevail in Malaysia in coming months.”
Malaysia’s palm oil export in April so far was higher by 12.7 percent at 826,908 tons, according to cargo data surveyor SGS (Malaysia) Bhd.
In the futures market, Crude Palm Oil (CPO) for April delivery touched an intraday high of Rs 1,231 and an intraday low of Rs 1,192.70 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 883.10 and a high of Rs 1,231.
CPO delivery for April fell by Rs 13.80, or 1.12 percent to Rs 1,213.60 per 10 kg at 16:23 hours IST with a business turnover of 2,222 lots.
CPO delivery for May declined by Rs 26.20, or 2.21 percent to Rs 1,157.50 per 10 kg with a business volume of 5,691 lots.
The value of April and May's contracts traded so far is Rs 265.21 crore and Rs 343.40 crore, respectively.
Geojit Financial Services said, “As long as prices stay above Rs 1,200 we could see more upside moves targeting Rs 1,240 levels.”
Kotak Securities expects MCX CPO to trade range-bound with positive bias for the near future.
As of April 20, MCX CPO April was trading at a premium of Rs 9 from import cost at Kandla Port.
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