Crude Palm Oil Trading Range Between 558.9 And 578.7

CPO trading range for the day is 558.9-578.7. Market is looking to take support at 565.2, a break below could see a test of 558.9 and resistance is likely to be seen at 575.1, a move above could see prices testing 578.7. In yesterday's trading session Crude Palm oil has touched the low of 562.5 after opening at 563, and finally settled at 571.5.

Crude Palm oil yesterday traded with the positive node and settled 0.99% up at 571.5 tracking firmness in spot market demand but upside was limited as weak July exports offset a downgrade of Soy crop conditions by the U.S. Department of Agriculture that fed fears of tighter global oilseed supplies.

CPO futures prices for August contract at MCX recouped to Rs.571.5/10 kg up by 0.99%. Recovery in Palm oil prices was noticed in slightly higher demand fro edible oils on Ramzan and Raksha Bandhan. CPO futures prices for October contract at Bursa Malaysia Derivatives Exchange are trading higher at 2985 MYR/tonne up by 0.17%. Malaysian Palm oil exports dropped to 1.23 million tonnes down by 15% in July against previous month. Lowered exports and expectations of higher stock levels in Palm oil in Malaysia may pressurize on Palm oil prices in international markets.

Malaysia will increase shipping quotas for tax free crude palm oil by up to 2 million tonnes this year to help planters cope with higher output in the next few months, government sources said, as the world's No.2 supplier struggles to maintain its export momentum. But slowing exports coupled with better production expected in Malaysia this month could boost Palm oil stock levels and ease some pressure off tightening global oilseed supplies.

Gold almost stagnant but turning bearish as day progress

Gold trading range for the day is 30090-30380. Technically market is getting support at 30144 and below could see a test of 30090 level, And resistance is likely to be seen at 30289, a move above could see prices testing 30380. Holdings of the exchange-traded products are set to decline for a third straight month in July, down around 3 tonnes.

Gold settled flat at 30199 with a marginal gain came from the rupee weakness after the central bank kept both interest rates and its hawkish policy stance intact, depriving the economy of near-term drivers to boost growth. Interest in physical Gold remains lackluster, with demand from major consumer India crimped by higher prices and the world's largest Gold backed ETF, SPDR Gold Trust, set for its biggest monthly outflow this year in July.

COMEX Gold failed to hold the break out above $1630 while COMEX Silver successfully crossed $28 heading towards $28.50. For the day coming by expect Bullion desk to remain volatile due to on-going efforts to support the leading economies. But Silver seems lucrative once it breaks 54500 at MCX. Gold has support level of 30100 with the resistance of 30300.

Despite of losses, the metal posted its second consecutive monthly rise after a string of weak US economic indicators boosted expectations that the Federal Reserve was exploring new ways to support growth.

Spot Gold prices declined 0.4 percent on the back of rise in the risk aversion in the markets on speculation that Fed might not introduce stimulus measures to boost the economy eyeing better than expected US consumer confidence. However, weakness in the US Dollar index (DX) cushioned sharp fall in the yellow metal.

The yellow metal touched a low of $1610.34/oz and closed at $1613.3/oz in yesterday’s trading session. MCX Gold prices also declined 0.1 percent and closed at Rs.29,749/10gms after touching a low of Rs.29,721/10gms. However, depreciation in the Indian rupee cushioned sharp fall in the prices.