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Crude palm oil

* Crude palm oil prices this year gained by 12.70% as improving demand added to expectations of sustained tight supply.

* MPOC sees Q2 crude palm oil price at 3,846 ringgit/tonne - MPOC said on Monday it expects the benchmark crude palm oil price to average 3,846 ringgit a tonne during the second quarter of the year and will peak at 4,190 ringgit a tonne.

* Monthly end-stocks in the world's second-largest producer will likely trend below 1.5 million tonnes, MPOC's chief executive officer Wan Zawawi Wan Ismail said in an online presentation.

* Palm oil exports from Malaysia, the world's second-largest exporter, rose about 27% in March from the previous month, cargo surveyors said

* Prices of rival soybeans rose to their highest in nearly a month after the U.S. Department of Agriculture's planting intentions report pegged soybean acreage well below expectations.

* Stronger rupee with respect to dollar had led to support for higher imports of vegetable oil.

* According to Solvent Extractors Association (SEA), Palm Oil imports fell by 97.96 percent in February 2021 to 3.94 lakh tons from 7.80 lakh tons in January 21.

* Data released by cargo surveyor Intertek Testing Services showed that Malaysia’s palm oil products export stood at 1.27 million tonnes in March 2021, up 26.82% from 1mtns in February 2021,”.

* Malaysia’s CPO market was traded mostly higher, tracking the stronger performance of soybean oil prices and supported by firmer palm oil products export for March.

* 41 People Die as Flash Floods, Landslides, Earthquake and Cyclones Affect Life in Indonesia. Back-to-back disasters have been affecting millions of people in Indonesia with a heightened frequency in the last few years.

Technical:

Technical Reading:

Crude Palm Oil on MCX is currently trading near 1101.7. It forms the Ascending Channel on the daily chart. Prices are currently trading above 50-day moving average and above 200-day moving average. Also Ichimoku indicators suggest prices are currently in the positive zone. RSI suggests prices are currently in the positive zone. Markets are expected to trade with volatility in the coming trading sessions.

Fundamentally Crude Palm Oil on Demand side, rising edible oil demand and rising prices & demand of Rival Soybean is punching CPO higher. Exports from Malaysia, rose about 27% in March from the previous month On supply side Monthly end-stocks in the Malasiya will likely trend below 1.5 million tonnes according to MPOC. Palm Oil imports to India fell by 97.96 percent in February 2021 to 3.94 lakh tons from 7.80 lakh tons in January 21 According to Solvent Extractors Association (SEA).

OUTLOOK

Currently Crude Palm Oil prices bounced back from their 50 DMA support and they are expected to face next resistance near 1180 - 1190 levels. This View is Valid till prices stay above 1040 levels.

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