According to Angel Commodities, MCX Jun CPO edged lower for the third consecutive session due to tariff cut on crude palm oil.
Angel Commodities' report on Crude Palm oil
MCX Jun CPO edged lower for the third consecutive session due to tariff cut on crude palm oil. Moreover, tariff difference between CPO and RBD increased to over 40 dollars. For 1st half of May, tariff value for CPO and RBD Palmolein cut by 8 and 1 dollar to 514 and 555 dollar per ton which is lowest tariff rate in 2019. Currently, CPO prices are about 18-20% down on year due to higher stocks, weak international prices and higher imports.
CPO futures expected to trade sideways to lower due to weak international prices. Moreover, lower tariff value and higher import figures bearish sign. Higher edible oil stocks by 20% compared to last year is also pressurizing prices of edible oil.
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