Crude palm oil futures traded firm at Rs 902.80 per 10 kg on December 10 as participants increased their long position as seen by the open interest. Malaysian palm oil futures gained 1.48 percent to settle at 3,408 Ringgits on Bursa Malaysia Bhd.
The Malaysian Palm Oil Association (MPOA) expects Malaysian palm oil output to decline by 12 percent in November, while exports are expected to slump more than 15 percent during the month.
Malaysian palm oil export in the first five days of December have declined 20 percent month-on-month.
“CPO (crude palm oil) is facing resistance Rs 902 levels which is 21 Days SMA. Indian Importer replacing soya oil, which is cheaper than Malaysian palm oil, drags the demand for the commodity. India is the largest importer of crude palm oil and lower demand from India drag down the prices. Upside resistance for the Crude Palm Oil is Rs 902-908 and on the downside support is at Rs 883-870 levels,” Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said.
CPO delivery for December soared Rs 8.30, or 0.93 percent, at Rs 902.80 per 10 kg at 1453 hours IST with a business turnover of 4,953 lots.
CPO delivery for January gained Rs 9, or 1.01 percent, at Rs 898.30 per 10 kg with a business volume of 4,147 lots.
The value of December and January’s contracts traded, so far, is Rs 135.34 crore and Rs 104.78 crore, respectively.
Kotak Securities expect MCX CPO to continue with some marginal losses going forward amid prospects of bumper import in December. However, lower edible oil stock in Malaysia and in the global market may support CPO from lower levels.
As of December 8, MCX CPO December contract was trading at a discount of Rs 30 from import cost at Kandla Port.