Crude Palm Oil (CPO) Futures on MCX closed lower on Monday tracking international prices. There is expectation of higher stock levels of edible oil in the country as oil seed crushing is going on in full swing. Moreover, government lowered the base import price of CPO by $6 to $747 per tonnes for 1st half of April. Malaysian palm oil futures ended on Monday at their lowest in six months, weighed down by higher than expected production and end-stocks data from an industry regulator. Data from the MPOB showed end-stocks for March rose 6.5% from February to 1.55 mt. Output surged 16.3% to 1.46 mt, the first monthly gain since September and the strongest month-on-month rise in over a year.

Outlook

We expect Soybean prices to trade sideways on expectation of steady demand from the crushers. While the prices of Ref Soy oil and CPO may trade sideways to down on adequate supplies and expectation of cheap imports but good domestic demand may keep prices supported. Moreover, govt allowing bulk exports of edible oil may support prices.

Get Commodity Market Trading Tips for click here http://www.ripplesadvisory.com/services.php.