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Crude Palm Oil Outlook Remains Bullish With Heavy Buying Interest

ByCommodityOnline
Published 07/23/2012, 04:30 AM
Updated 05/14/2017, 06:45 AM
IMOEX
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Crude palm oil trading range for the day is 565.9-588.3. Market is looking to take support at 573, a break below could see a test of 565.9 and resistance is likely to be seen at 584.2, a move above could see prices testing 588.3. In Saturday's trading session crude palm oil has touched the low of 570 after opening at 571.9, and finally settled at 580.1.

Crude palm oil on Saturday traded with the positive node and settled 1.67% up at 580.1 supported by rising demand in spot markets.

BMD CPO futures posted a 0.8% weekly loss, as weather-driven gains were capped by weak exports and higher production. October 2012 CPO futures were down by 0.1% percent to close at MYR3,042/ton. In the external front, Brent crude slipped below $107/bbl on Friday as worries about a conflict in the Middle East eased slightly.

The outlook for CPO futures will likely remain bullish, with buying interest likely to drive CPO prices towards the resistance level of MYR3,200/ton this week. Slower exports and a higher output could boost palm oil stocks that fell to a 14-month low in June, helping to ease concerns of tight oilseed supplies.

Palm oil gains limited following improved weather forecasts in drought-hit areas of the U.S. Midwest, easing worries over deteriorating yields and limited supplies.

CPO futures prices for August contract at MCX ended higher at Rs.583.8/10 kg up by 1.78%. CPO futures prices for September contract at Bursa Malaysia Derivatives Exchange are trading lower at 3033 MYR/tonne down by 0.23%, while October contract is trading higher at 2993 MYR/tonne down by 1.61%. The first 20 days in July against last month is pushing down palm oil prices in international future markets.

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