Crude palm oil slips after hitting new lifetime high on profit booking

Crude palm oil futures reached Rs 1,210.90 per 10 kg on April 23 after touching a new lifetime high of Rs 1,231 during intraday on MCX. Malaysian palm oil futures slipped 1.54 percent to 3,929 ringgits on Bursa Malaysia Bhd.

Crude palm oil traded in negative territory after a lapse in the evening session.
Agri commodities have been higher than the 5, 20, 50, 100 and 200-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 66.22, indicating a rise in prices.

The oil complex gained lifespan once again amid positive trade sentiments in domestic and foreign trade centers. Price-taking was later noted due to rising price levels, Abhijeet Banerjee, Senior Research Analyst-Agri Research, Religare Broking Ltd Banerjee advised his clients to buy an April CPO until the price is trading above Rs 1,155. Do not fail.

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Mohit Vyas, analyst at Kotak Securities, said, “Stocks failed to pull BMD CPO higher than expected by MPOB for the month of March, as the market expects a weak stock position in Malaysia in the coming months.”
According to cargo data surveyor SGS (Malaysia) Bhd, Malaysia’s palm oil exports soared 12.7 percent to 826,908 tonnes in April.

In the futures market, crude palm oil (CPO) for April delivery reached an intraday low of Rs 1,231 on MCX and an intraday low of Rs 1,192.70 per 10 kg. The CPO has so far touched a low of Rs 883.10 and a high of Rs 1,231 in the current series.

CPO delivery for April 13. , Declined by Rs 0 or 1.12 per cent to Rs 1,213.60 per 10 kg, traded for 2,2222 lots at 24:24 hours IST.
CPO deliveries fell by Rs 26.20, or 2.21 per cent, to Rs 1,157.50 per 10 kg in May, with a turnover of 5,697 lots.

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The contracts for April and May are valued at Rs 265.21 crore and Rs 343.40 crore respectively.

Geojit Financial Services said, “As long as prices remain above Rs 1,200, we may see a reverse move beyond the target of Rs 1,240.”

Kotak Securities expects MCX CPO to be trade-bound with a positive bias for the foreseeable future.
As of April 20, MCX CPO was trading at a premium of Rs 9 from the import cost at April Kandla Port.

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