According to Angel Commodities, MCX CPO Dec contract edged higher on Tuesday but good stock positions in the country coupled with lower international prices keeping prices in tight range.
Angel Commodities' report on Crude oil
MCX CPO Dec contract edged higher on Tuesday but good stock positions in the country coupled with lower international prices keeping prices in tight range. Moreover, stronger rupees and lower tariff values also pressurize prices as it makes imports cheaper. Currently it is trading at 15 - month low. According to SEA monthly update during 2017 - 18, import of palm oil down by about 6.5% to 8.7 mt compared to 9.3 mt last year. The government cut tariff price of crude palm oil by $ 46 to $ 463 per tn and cut $ 30 per ton for refined, bleached and deodo rised palm oil for the first half of December.
CPO futures may trade sideways to higher due to technical bounce but lowering tariff value and steady physical demand from the stockists keep prices in a range.
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