Crude palm oil futures edged higher to Rs 767 per 10 kg on September 8 as participants increased their long position as seen by the open interest. Malaysian palm oil futures gained 2.35 percent to trade at 2,870 Ringgits on Bursa Malaysia Bhd.
Malaysian palm oil jumped above 2,900 Ringgits last week on reports of soybean crop-loss in India and expectation of good demand from India during the festive months.
In the futures market, Crude Palm Oil (CPO) for September delivery touched an intraday high of Rs 770.60 and an intraday low of Rs 764 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 626 and a high of Rs 778.70.
CPO delivery for September gained Rs 3.40, or 0.45 percent, to Rs 767 per 10 kg at 15:57 hours IST with a business turnover of 4,404 lots.
CPO delivery for October rose Rs 3.70, or 0.48 percent, at Rs 767.60 per 10 kg with a business volume of 2,456 lots.
The value of September and October’s contracts traded so far is Rs 60.56 crore and Rs 58.49 crore, respectively.
Looking at the prospect of weakness in BMD CPO, we expect MCX CPO to trade range-bound with negative bias for the near future, said Kotak Securities.
As of September 7, MCX September CPO was trading at a discount of Rs 7 from import cost of Rs 771.