Crude palm oil futures traded weaker at Rs 1,158.80 per 10 kg on April 30 as participants trimmed their positions as seen from open interest. Malaysian palm oil futures declined 1.70 percent to settle at 3,869 Ringgits on Bursa Malaysia Bhd.
Crude palm oil traded in the negative territory after a gap-down opening in the evening session tracking a weak global trend.
The agri commodity has been trading higher than 50, 100 and 200-days’ moving averages but lower than 5 and 20 days’ moving averages on a daily chart for the May series. The momentum indicator Relative Strength Index (RSI) is at 49.39 which indicates neutral movement in the prices.
Malaysian palm oil exports are estimated to be 8.5 percent higher for the period April 1-25 at 1.1 million tons, data from private Cargo Surveyor Amspec Agri showed.
Indonesia’s palm oil association (GAPKI) reported that Indonesia’s palm oil output jumped by 13.5 percent year on year.
Mohit Vyas, Analyst at Kotak Securities, said: “Prospects of demand destruction from India following restricted movements in many states and sell-off in CBOT Soy oil have dragged BMD CPO.”
In the futures market, Crude Palm Oil (CPO) for May delivery touched an intraday high of Rs 1,177.30 and an intraday low of Rs 1,156.70 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 997 and a high of Rs 1,198.80.
CPO delivery for April declined Rs 15.20, or 1.29 percent at Rs 1,158.80 per 10 kg at 18:39 hours IST with a business turnover of 5,343 lots.
CPO delivery for June declined Rs 21.40, or 1.89 percent at Rs 1,112.10 per 10 kg with a business volume of 693 lots.
The value of April and May’s contracts traded so far is Rs 261.07 crore and Rs 50.68 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said, “MCX CPO has been trading flat since morning and prices are sustaining above 50-SMA and we may expect the market to rise above Rs 1,180 levels and aim for a target of Rs 1,193.9 with a stop loss of Rs 1,172.
As of April 29, MCX CPO May contract was trading at a discount of Rs 18 from the import cost of Rs 1,192 at Kandla Port.
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