Angel Commodities’ report on Crude Oil
MCX CPO Dec edged lower due to weak Malaysia futures and stronger rupees. Currently it is trading at 15 – month low. According to SEA monthly update during 2017 – 18, import of palm oil down by about 6.5% to 8.7 mt compared to 9.3 mt last year. The government cut tariff price of crude palm oil by $ 46 to $ 463 per tn and cut $ 30 per ton for refined, bleached and deodo rised palm oil for the first half of December . There are reports of sufficient stock levels in the country and expectation of cheaper imports from Malaysia due to zero duty. USDA in its Dec ember update, forecast palm oil production to 73.3 million tonnes in 2018/19 up by 1.45% m/m due to higher production estimates for Indonesia. India imports figures are unchanged at 10.5 million tonnes, 22% higher compared to past year imports. Domestic consumption for India is forecast at 10.6 mt, up 16.7% on year.
Outlook
CPO futures may trade sideways to higher due to technical bounce but lowering tariff value and steady physical demand from the stockists keep prices in a range.
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