Crude palm Oil Dropped in Anticipation of Higher Global Edible Oil Supplies

Crude Palm Oil yesterday settled down by -0.3% at 1108.6 in anticipation of higher global edible oil supplies. Malaysia’s palm oil inventories at the end-October are pegged to rise 3.4% to 1.81 million tonnes, lifted by a plunge in exports amid shrinking output. However, the downside is seen limited as supply constraints due to the rainy season and strength in rival oils supported the market. Prices are seen rising as the rainy season and coronavirus-linked labour shortages are slowing output in Malaysia. October export data improved amid tight supply worries. The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia.

The Indian Vegetable Oils Producers Association says it is seeing early signs of demand shifting from palm oil to soft oils after India’s duty cut made soft oil more attractive. Malaysia’s crude palm oil production in 2021 is forecast to decline by 700,000 tonnes to 18.4 million tonnes due to a labour shortage and erratic weather conditions, state agency the Malaysian Palm Oil Council (MPOC) said. Neighbouring Indonesia has not faced such labour issues and has expanded its planted area by about 200,000 hectares this year, MPOC chief executive Wan Zawawi Wan Ismail said. In the spot market, Crude palm oil dropped by -20.7 Rupees to end at 1127 Rupees.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 0.55% to settled at 4612 while prices down -3.3 rupees, now CPO is getting support at 1101.3 and below same could see a test of 1094.1 levels, and resistance is now likely to be seen at 1115.4, a move above could see prices testing 1122.3.

Investing.com

Tags: price, India, Malaysia, palm oil, edible oil