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Crude Palm Looks Bearish For Short Term

Published 07/30/2012, 03:02 AM
Updated 05/14/2017, 06:45 AM
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CPO trading range for the day is 561.93-571.93. Market is looking to take support at 563.8, a break below could see a test of 561.9 and resistance is likely to be seen at 568.8, a move above could see prices testing 571.9. In Saturday's trading session Crude Palm oil has touched the low of 565.1 after opening at 567.9, and finally settled at 565.6.

Crude Palm oil traded with the negative node and settled -0.44% down at 565.6 tracking weakness in spot market demand. Favourable weather for Soybeans could lead to a higher supply of Soybean oil and draw demand away from Palm oil.

Market players are looking out for Palm oil export data for July due next Tuesday for consumption trends after earlier numbers showed signs of slowing demand. Malaysia's Palm oil exports fell 14.3 percent and 18.6 percent over the July 1-25 period, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively.

A tighter supply outlook on persistent drought in the U.S. Midwest has pushed Soybean oil prices to record highs, fuelling worries of food inflation in top Edible oil buyers India and China. MCX CPO settled lower last week tracking the entire Edible oil segment. Also, lower demand capped the upside in Edible oil prices.

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