Crude palm Oil on MCX settled up by 0.08% at 595.3 amid supply worries from Malaysia and on strong Malaysian palm oil export data for Dec 1-15. Palm oil shipments rose 12% from 464,582 tons in Dec. 1-15 period, according to Societe Generale de Surveillance. Malaysia Feb. Crude Palm Oil Export Tax raised to 7.5%. 

The MPOB monthly data for December has reconfirmed the supply tightness for Palm oil.  Production has declined by 0.10 mn in line with the seasonal trend of production decline. Lower exports have offset the lower production which led to a steady stock. Stock continues to be on a five year low keeping the supply tightness story intact.

                   Trading Ideas 

1. CPO trading range for the day is 591.7-599.1.

2. Crude palm oil prices ended with gains amid supply worries from Malaysia and on strong Malaysian palm oil export data for Dec 1-15.

3. Stock continues to be on a five year low keeping the supply tightness story intact.

4. As per MPOB Palm oil output may rise by 12 % this year to 19.4 million tons from 17.4 million tons in 2016.

5. Crude palm oil prices in spot market dropped by 0.90 rupees and settled at 601.10 rupees.