Technically MCX Crude Palm Oil is getting support at 592.8 and below same could see a test of 589.9 level, And resistance is now likely to be seen at 598.3, a move above could see prices testing 600.9.
Crude Palm Oil on MCX settled down by 0.45% at 595.7 on profit booking after prices seen supported amid improving demand from the stockists ahead of festive season. To some extend downside seen limited amid higher export demand and lower stock levels with minimum supplies.
Palm oil production is widely expected to rise in the coming months in line with seasonal trends. August output is likely to have risen 9.9 percent to 1.65 million tonnes, contributing to higher inventory levels, which are seen hitting a six-month top at 2.41 million tonnes.
Indonesia's 2018 crude palm oil output is set to climb by 4-6 million tonnes from last year to 40-42 million tonnes, said an official from an industry association. Palm oil output usually rises in line with seasonal factors towards the third and fourth quarter of the year.
Indonesia exported 2.81 million tonnes of palm and palm kernel oils in the month of June, up 17 percent on a year ago, data from the Indonesian palm oil association (GAPKI) showed. The rise in exports was due to "cheap" prices of the vegetable oil, while top buyer India resumed purchases, GAPKI said in a statement.
Despite the higher exports, domestic stockpiles of palm oil rose to 4.9 million tonnes in July, up from 4.85 million tonnes a month earlier.Production and exports of palm oil from Indonesia, the world's largest producer of the vegetable oil, rose in July from a month earlier, said a survey of two industry groups and a state palm oil research firm.
--Crude Palm Oil trading range for the day is 589.9-600.9.
--Crude Palm Oil dropped on profit booking after prices seen supported amid improving demand from the stockists ahead of festive season.
--To some extend downside seen limited amid higher export demand and lower stock levels with minimum supplies.
--Palm oil production is widely expected to rise in the coming months in line with seasonal trends.
--Crude Palm Oil prices in spot market dropped 0.40 rupees and settled at 606.80 rupees.
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