Crude palm oil futures traded firm at Rs 925.50 per 10 kg on December 17. Malaysian palm oil futures jumped 1.15 percent to settle at 3,404 Ringgits on Bursa Malaysia Bhd.
Malaysian Palm Oil Board (MPOB) reported Malaysian palm oil stock at 15.64 lakh tons, down by 0.5 percent from last month.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “CPO has crossed the short-term resistance above Rs 920 and close above this level. The next resistance for the commodity is Rs 930 levels. The price is moving higher high lower low formation which suggests buy on dips for the commodity.”
In the futures market, Crude Palm Oil (CPO) for December delivery touched an intraday high of Rs 929.70 and an intraday low of Rs 917.20 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 738.10 and a high of Rs 943.
CPO delivery for December gained Rs 1.7, or 0.18 percent at Rs 925.5 per 10 kg at 15:19 hours IST with a business turnover of 4,625 lots.
CPO delivery for January jumped Rs 1.80, or 0.19 percent at Rs 927 per 10 kg with a business volume of 4,191 lots.
The value of December and January’s contracts traded so far is Rs 139.69 crore and Rs 115.76 crore, respectively.
Mohit Vyas, Analyst at Kotak Securities expect MCX CPO to continue with some marginal gains going forward amid an expected recovery in BMD CPO but prospects of bumper import in December contain the rally to some extent.
As of December 16, MCX CPO December was trading at a discount of Rs 9 from import cost at Kandla Port.
Source:-moneycontrol.com