According to Angel Commodities, MCX CPO closed positive for 2nd consecutive session on Thursday due to short covering initiated by market participants to close at 513.00 rupees per 10 kg.
Angel Commodities' report on Crude Palm oil
MCX CPO closed positive for 2nd consecutive session on Thursday due to short covering initiated by market participants to close at 513.00 rupees per 10 kg. Prices have been little under pressure recently due to cut in the tariff values by government. For 1 st half of July, tariff value for CPO and RBD Palmolein cut by 17 and 22 dollar to 508 and 540 dollar per ton. Currently, CPO prices are about 18-20% down on year due to weak international prices and higher import prospects. Palm oil stocks at port increased to 6.2 lt as on 1st June compared to 5.55 lt last month. According to USDA, India's palm oil imports in 2018/19 (Nov-Oct) are expected to jump by 20% on year to 105 lt due to weak International prices. According to SEA monthly press release, Import of CPO up 32.2% on year in May to 4.40 lt while import of RBD up by 135% to 3.71 lt.
CPO futures expected to trade sideways to lower due to higher stocks in the port and expectation of higher imports in coming months coupled with lower Malaysian price. However, any import duty hike by the government may support palm oil prices.
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