22/11/2008 (Commodity Online) - Fundamental Analysis: MCX CPO futures closed higher on account of Government of India allowed to exporting of edible oil in small branded packages of 5 kg with immediate effect.

The Indian oil industry requested to government of India for 30% import duty on palm oil and 27.5% import duty on refined soy oil to protect the interst of the farmers. Palm oil constitutes more than 75% of the import basket.

According to SGS (a cargo surveyor) palm oil export in first 20 days of November increased by 22% to 8,44,750 metric tonnes as compared to same period in Oct.

India imported 4.04 million tonnes of crude palm oil during the year ended October as compared to 2.99 million tonnes the previous year.

Technical Analysis
CPO Prices (MCX Dec Contract) closed higher at 258.20 on Friday; from its high of the day (259.10) and touched a low of 250.80.

Prices closed below its 10 Days & below its 20 Days EMA. 14-Days RSI is at 38.95.

Prices are likely to trade sideways with short-term and support and Resistance.

Outlook
Crude palm oil futures are expected to trade range bound amidst subdued trading activity on lack of fresh fundamentals. However, (for long term) CPO prices are expected to come down on higher production and stock of palm oil in Indonesia as well as in Malaysia.