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Mumbai (Commoditiescontrol) - Crude palm oil (CPO) futures on Multi Commodity Exchange (MCX) rose around 2 percent this week amid improvind domestic demand outlook.
A prominent trader from Kolkata said, demand from retailers has picked up in last couple of days which has mainly helped prices to rise on both futures as well as on spot markets.
However, stockist participation this week were slow as they were busy in clearance of old stocks bought at lower prices to lock their profits.
Crude palm oil futures has risen around 2 percent, while volume nearly tripled and open interest has risen nearly 22 percent this week. Rising open interest/volume with price uptick indicates addition of fresh long position.
In addition to it, weak Indian rupee also supported prices in futures market. The local currency this week has dropped 0.35 percent making edible oil landing cost expensive at domestic ports.
On the exception to domestic market, Malaysian palm oil futures were down 0.6 percent this week, largely pressured by weak export and strong ringgit.
Cargo surveyors have reported palm oil exports down 8.5 percent during 1-25 January versus same period a month ago, whereas ringgit turned 3.4 percent stronger this week.
Another trader from Kanpur said, "Palm oil demand likely to rise in the near term as weather is turning warmer again, which might shift demand back to palm from soy oil, as palm oil solidifies in cold weather.
He also added, prices and demand likely to hold back, only if cold temperature is extended or supply rises more than expected.
According to CC-Analyst: "Crude palm oil (CPO) futures on Multi Commodity Exchange (MCX) is expected to test higher range of 449-459 in near term, whereas support seen at 439-429.
(By Commoditiescontrol.com Bureau; +91-22-40015516)
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