MCX CPO futures closed lower on losses in BMD CPO futures at Malaysia.
Lower CIF prices of CPO and Crude soy oil also provided support to bears in the market.
Malaysia traditionally major exporter of refined palm oil; exports of CPO strictly regulated through licenses, quota, to encourage local refining.
According to SGS, palm oil exports in the first 10 days of October declined by around 11.7% to 346,579 tonnes in comparison with the same period in September. The exports are below market expectation of 375,000 tonnes.
CPO Prices (MCX Nov Contract) closed lower at 298.00 on Wednesday; from its high of the day (305.10) and touched a low of 298.
Prices closed below its 10 Days & its 20 Days EMA. 14-Days RSI is at 27.71.
Prices are likely to trade sideways down with short-term and support and Resistance.
Crude palm oil futures are expected to trade lower on sharp fall in BMD CPO futures. Sharp fall in crude oil prices are also in favor of bears on bio-diesel concerned.
Courtesy: Angel Commodities