Commodity Trading Tips for Crude Palm Oil by KediaCommodity

Ajay Kumar Kedia 15 November 2012

Crude-Palm-Oil Crude Palm Oil yesterday traded with the positive node and settled 2.91% up at 442.7 supported by a slowdown in inventory build-up and a demand recovery for the edible oil. Malaysia's October palm oil stocks inched up 1.1 percent to a record 2.51 million tonnes, but the rise fell short of market expectations of a 7.5 percent rise in stocks to 2.67 million tonnes. Cargo surveyor data pointed to a demand recovery as palm oil's steep $300 discount to soybean oil has encouraged some buyers to shift to the cheaper edible oil, with Nov. 1-10 exports rising as much as 22 percent from a month ago. Market participants will be looking out for Malaysia's Nov. 1-10 exports data from Societe Generale de Surveillance later, after another cargo surveyor Intertek Testing Services reported on Saturday a 16 percent rise from the previous month. In a bearish sign for palm oil, crude oil eased towards $109 per barrel on Monday, as concerns about the looming U.S. fiscal cliff and weak economic data from Japan offset signs that Chinese oil demand grew last month. Malaysia's production of palm oil in October fell 3.3% from the previous month to 1.94 million tons, while exports reached 1.76 million tons, an increase of 16% from the previous month, the MPOB said. In yesterday's trading session Crude Palm oil has touched the low of 432 after opening at 432, and finally settled at 442.7. For today's session market is looking to take support at 435.5, a break below could see a test of 428.2 and where as resistance is now likely to be seen at 446.5, a move above could see prices testing 450.2.