Milan
Shah, agri research analyst : CPO January contract is
likely to trade sideways for both short term and intra day. Short term support
is seen at 445 and resistance at 468. futures traded on negative note on Tuesday tracking international markets on
concerns over high inventory against sluggish export demand for February in
Malaysia. The trend is likely to be sideways for CPO Feb contracts.
Short term support is seen at 445 and resistance at 468. Intraday
support is seen at 455 and resistance at 462 , Milan Shah added. In the month
of Dec 2014, alone India imported 778,815 tonnes of Crude palm oil which is
about 9% and 12% increase m-o-m and y-o-y respectively. Palm oils make
up 75% of the country's total vegetable oil imports in Dec 14 as per the SEA
data released. India meets 60% of its annual vegetable oil demand of 17-18
million tonnes via imports. Indonesia's government has proposed a three-fold
increase in its biodiesel subsidies to 5,000 rupiah (40 U.S. cents) per litre
from 1,500 rupiah, aimed at protecting the top producer's fledgling biofuel
industry against lower crude prices. According to Trade Ministry, Indonesia the
crude palm oil export tax for February is kept at zero, unchanged from January.
The overseas shipment of Indonesia's crude palm oil (CPO) and its derivative
products last year grew 2.5 percent to 21.76 million tons. Thailand plans to
import around 50,000 tonnes of crude palm oil from February due to a domestic
shortage caused by drought according to the trade sources.