( Readers traders can take this crucial level as the benchmark for major support level on cpo future since cpo price may head to such level if June's end month stock hit 2 million tonnes level as posted in my previous article.)
RM2,300.00 was reported on crude palm oil (CPO) prices per metric tonne for Indonesia’s biodiesel producers profitable level is the crucial level in CPO Futures trading that I wish to emphasize here!
Below is the news excerpts:
...despite the higher inventory expected, the downside in crude palm oil (CPO) prices should be limited to RM2,300 per metric tonne as this level is within the research firm’s expectations of Indonesia’s biodiesel producers profitable level, which will subsequently spur discretionary demand.
Palm oil inventory is expected to increase by five per cent to 1.93 million metric tonnes, while demand has been viewed as sustainable, driven by positive indicators in the food sector.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) in a report yesterday believed June’s total supply of 1.72 million metric tonnes should outpace total demand of 1.63 million metric tonnes. “We have assumed one per cent production growth month-on-month in line with the seasonal pattern...
Source: The Borneo Post