According to Angel Commodities, MCX CPO closed lower for the second consecutive session on Tuesday in the absence of any clue from Malaysia.
Angel Commodities' report on Crude Palm oil
MCX CPO closed lower for the second consecutive session on Tuesday in the absence of any clue from Malaysia. Prices have climb close to 12% in January supported by increased tariff price by Government for of crude palm. Palm oil imports are expected to increase in January as well due to lowering import duty from Malaysia. According to SEA monthly update, CPO imports were up by 13.1% at 6.70 lakh tonnes in December. However, the Nov-Dec period the import volumes dropped compared to last year. According to USDA monthly report in December, India imports figures are unchanged at 10.5 mt, up 22% compared to past year imports. Domestic consumption for India is forecast at 10.6 mt, up 16.7% on year. India has cut import taxes on crude and refined palm oil from Southeast Asian (ASEAN) countries after a request from suppliers.
CPO futures may trade sideways to down tracking weak international prices. Moreover, higher tariff value, weaker rupees and improving physical demand from the stockists may support edible oil prices.
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