Crude palm oil futures traded firm at Rs 799.90 per 10 kg on October 13 as participants increased their long position as seen by the open interest. Malaysian palm oil futures gained marginally 0.26 percent to trade at 3,055 Ringgits on Bursa Malaysia Bhd.
Crude palm oil traded higher tracking firm demand in the domestic market ahead of the festival season.
According to Solvent Extractors Association (SEA), crude palm oil and crude palm kernel import rose 23 percent in August to 724,351 tons.
As per the Malaysian Palm Oil Board (MPOB), Malaysia’s crude oil output rises 3.1 percent on month to 1.86 million tons in August. Total palm oil stocks were marginally down at 1.69 million tons.
The reports of heavy rains in Malaysia and Indonesia in the last few days due to La Nina effect has lifted sentiments in palm oil since last week.
In the futures market, Crude Palm Oil (CPO) for October delivery touched an intraday high of Rs 800.80 and an intraday low of Rs 790.90 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 710.40 and a high of Rs 818.50.
CPO delivery for October soared 9.10, or 1.15 percent at Rs 799.90 per 10 kg at 15:34 hours IST with a business turnover of 3,878 lots.
CPO delivery for November gained Rs 9.50, or 1.20 percent at Rs 798.50 per 10 kg with a business volume of 2,861 lots.
The value of October and November’s contracts traded so far is Rs 109.69 crore and Rs 68.61 crore, respectively.
Geojit Financial Services said, though trend remains positive, selloffs are more likely to see towards Rs 780 levels, once it breaks the support of Rs 790 regions.
While Kotak Securities said, the market expectation of higher edible oil imports by India in October and expected weakness in BMD CPO are likely to keep MCX CPO range-bound with negative bias for today.