Crude palm oil slips to Rs 876.90 per 10 kg in evening trade
In the futures market, Crude Palm Oil (CPO) for December delivery touched an intraday high of Rs 879.80 and an intraday low of Rs 872 per 10 kg on MCX.
November 30, 2020 / 07:05 PM IST
Crude palm oil futures traded lower at Rs 876.90 per 10 kg on November 30 as participants trimmed their position as seen by the open interest. Malaysian palm oil futures slipped 0.82 percent to settle at 3,373 Ringgits on Bursa Malaysia Bhd.
Crude palm prices traded weaker on a report of higher stock in Indonesia of 53.4 lakh tons in September against 43.6 lakh tons in August.
Sunand Subramaniam, Senior Research Associate at Choice Broking said, “Fundamentally for the coming month, we expect MCX CPO futures to be bearish as the Government of India has recently reduced the import duties on Crude Palm Oil from 37.5 percent to 27.5 percent which could improve imports to India.”
“Appreciating rupee is projected to reduce the price disparity and could increase imports of palm oil in India. Moreover, domestic markets which were witnessing the heat of the supply tightness are going to have eased as Government of India is now focussing on giving relief to the retail buyers,”, he said.
In the futures market, Crude Palm Oil (CPO) for December delivery touched an intraday high of Rs 879.80 and an intraday low of Rs 872 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 738.10 and a high of Rs 943.
CPO delivery for December eased Rs 6.80, or 0.77 percent at Rs 876.90 per 10 kg at 18:40 hours IST with a business turnover of 5,540 lots.
CPO delivery for January slipped Rs 8.90, or 1 percent at Rs 878 per 10 kg with a business volume of 2,469 lots.
The value of December and January’s contracts traded so far is Rs 27.46 crore and Rs 7.29 crore, respectively.
Subramaniam advised its clients to initiate a short position in MCX CPO December future at CMP Rs 865 or a rise in the price till Rs 870 can be used as a selling opportunity for the downside target of Rs 820. However, the bearish view can be negated if MCX CPO December closes above the resistance of Rs 907 levels.For all commodities-related news, click here