Technically now CPO is getting support at 436.20 and below same could see a test of 408.80 level, and resistance is now likely to be seen at 470.00, a move above could see prices testing 392.60.
CPO January prices rallied forming the base near to 420 levels as support seen from the concerns of heavy rain in few palm growing regions of Malaysia. In the month of Nov 2014 alone India imported 712,881 tonnes of Crude palm oil which is about 30% increase y-o-y. In last two months, due to nil export duty on palm products by Indonesia and Malaysia, lowest prices of palm products in last 5 years and reduced demand of CPO for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries. Also Palm oils make up 70% of the country's total vegetable oil imports. Technically now CPO is getting support at 436.20 and below same could see a test of 408.80 level, and resistance is now likely to be seen at 470.00, a move above could see prices testing 392.60.