Crude Palm Oil prices to trade sideways today: Angel Commodities

Angel Commodities’ report on Crude Palm Oil

MCX CPO closed lower on Monday tracking weak international prices. However, prices are still supportive at higher levels due to weaker rupees, and higher imports. Weakness in rupees is making imports expensive for the imports in India.  CPO has been trading all – time high in April due to jump in oilseed prices in the country following news on removing export restrictions on edible oils from the country.  There is good physical demand despite CPO trading at nearly 6 years high. The base import price of CPO was increased by $ 5 to $ 684 a tn for the second fortnight of April.  As  per SEA latest report,  India’s crude Palm oil (CPO) imports in  March increased by 30.33% compared to same period a year ago  despite the  govt. imposed higher duty. However, Shipment of RBD palmolein dropped 25.56% to 163,222 tons compared to 219,270 tons last year.

Outlook
CPO futures may trade sideways due to some expectation of technical correction supported by higher stocks. However, weak rupees, increasing demand from the domestic market and higher tariff may also support prices.

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