Crude palm oil futures traded steady at Rs 910 per 10 kg on December 11 as participants trimmed their position. Malaysian palm oil futures soared 0.56 percent to settle at 3,422 Ringgits on Bursa Malaysia Bhd.
The recovery in crude palm oil has been supported by increased purchases by China and anticipation of steep fall in output this month as Malaysian Palm Oil Board (MPOB) data was in line with market expectation.
Indonesia has increased export tax on CPO at $$33/ton against $3/ton till last month and recovery in crude oil likely to support BMD CPO in coming weeks as well.
In the futures market, Crude Palm Oil (CPO) for December delivery touched an intraday high of Rs 922.10 and an intraday low of Rs 907 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 738.10 and a high of Rs 943.
CPO delivery for December eased Rs 4.10, or 0.45 percent at Rs 910 per 10 kg at 14:50 hours IST with a business turnover of 4,639 lots.
CPO delivery for January gained Rs 0.70, or 0.08 percent at Rs 910 per 10 kg with a business volume of 4,462 lots.
The value of December and January’s contracts traded so far is Rs 194.10 crore and Rs 144.99 crore, respectively.
Kotak Securities expects MCX CPO to continue with some marginal gains going forward amid an expected recovery in BMD CPO but prospects of bumper import in December contain the rally to some extent.