CPO trading range for the day is 511.77-550.57. Market is looking to take support at 518.2, a break below could see a test of 511.8 and resistance is likely to be seen at 537.6, a move above could see prices testing 550.6.
Crude Palm oil yesterday traded with the negative node and settled -4.01% down at 524.7 tracking weak spot demand amid weakness in overseas market as the euro zone debt crisis and sluggish U.S. growth triggered a flight of capital from riskier assets.
BMD CPO futures slumped to their lowest in 2012 on Thursday as the Euro zone debt crisis and sluggish US growth triggered a flight of capital from riskier assets. Investors await fresh trading cues from Greek polls this weekend that could precipitate the country’s exit from the bloc. On the flip side, fundamentals remain quite encouraging given the higher demand and lower stocks. Aug’12 Palm oil futures lost 3.5% to close at MYR2,846, the lowest level this year.
NCDEX July CPO futures fell sharply on account of weak overseas market. BMD CPO futures fell sharply as euro zone debt concern due to Spain’s credit ratings cut to Baa3 from A3 by Moody (rating agency). As per Malaysian Palm Oil Board (MPOB), Malaysian Palm oil stock in the month May 2012 declined to 1,764,788 tonnes, down 4.46 as compared to 1,847,156 tonnes in April 2012.
With inputs from Kedia Commodities and India Infoline.
Looking for Trading Advisories? Visit tips.commodityonline.com
Get trends, pivot levels and trading patterns for the day on daily video. Visit youtube.com/commodityonlineindia