CPO Closed Lower On Thursday

MCX CPO closed lower on Thursday due to Weak price trend in Malaysian exchange and cut in tariff values of all the edible oils. CPO futures were down by 3.7% or Rs. 24 per 10 kgs. The base import price of crude palm oil and RBD palmolein was cut by $14 each and $17 to $644 per tn and $673 per tn, respectively. In the month of June, According to SEA monthly update, palm oil imports into the country were down 33% and 46% for CPO and RBD Palomlein in May compared to last year. India’s palm oil imports dropped in May due to higher taxes on shipments while weaker rupees making imports expensive.

Malaysian palm oil futures fell on Thursday to trade near 2 years low and its fourth consecutive session fall, tracking weaker related edible oils and slowing exports. Weaker export demand, expectation of improvement in production in coming months and a fall in crude oil prices is weighing on prices. Malaysia's exports between June 1 and 15 stood at 500,197 tonnes, down 7 % from the same period a month earlier. It is trading 10-15% lower than the last year expectation of lower export demands due to continuation of export tax for July also weighs on prices. Malaysia, the world's second-largest palm oil producer, kept its crude palm oil export tax at 5% in July. As per latest MPOB data release, Malaysia's palm oil exports fell 15.7% on month to 1.29 mt in May while production also declined 2.11% on month to 1.53 mt. However, inventories were at 1.17 mt in the country at the end of May, down 2.08% from a month ago.

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