CPO Recovers A Little On Wednesday



MCX CPO recovers a little on Wednesday due to expectation of improved physical demand. Earlier the price falls to 13 weeks low tracking weak international prices and higher stocks of edible oil the country. Earlier, government has raised the base import price of palm oil. The government hiked the base import price of RMD Palmolein to $681 per tn from $672 per tn. The base import price of CPO has been hiked to $658 per tn from $655 per tn. India’s palm oil imports dropped in April due to higher taxes on shipments and weaker rupees making imports expensive. As per SEA latest report, CPO imports in March increased by 30.33% compared to same period a year ago despite the govt. imposed higher duty. However, Shipment of RBD palmolein dropped 25.56% to 163,222 tons compared to 219,270 tons last year.

Malaysian palm oil futures extended falls to a more than 22- month low on Wednesday, tracking weakness in related edible oils. Moreover, expectation of lower export demands due to continuation of export tax for July also weighs on prices. Malaysia's exports between June 1 and 10 stood at 324,947 tonnes, down 20 % from the same period a month earlier. 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 due to lower demand from China and the EU resulted in a fall in exports. Malaysia's crude palm oil production also declined 2.11% on month to 1.53 mt in May. Crude palm oil 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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