Crude Palm oil prices to trade sideways to higher: Angel Commodities

Angel Commodities’ report on Crude Palm oil

MCX CPO Dec contract traded flat on Wednesday and currently close to 15 – month low. It is under pressure this month on concern over higher imports volumes, sufficient stocks levels and falling international palm oil prices. 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 $ 29 to $5 09 per tn and cut $ 21 per ton for refined, bleached and deodo rised palm oil for the second half of November.

Outlook

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.