MCX Apr CPO edged higher to climb to 2-week high on Tuesday tracking higher prices in Malaysia futures. Prices have rebound from near 12-week low. India’s palm oil imports in 2018/19 is expected to jump about 10% on year to a record high due to sharp fall in the prices. This made importers in India more attractive compared to rival soyoil and sunflower oil. For first half of Apr, tariff value for CPO and RBD Palmolein cut by 24 and 4 dollar to 529 and 567 dollar per ton. According to SEA monthly update, import of Crude palm oil down 9% on year in February to 4.98 lt but RBD palmolein imports surged by more than 19% by to 2.41 lt mainly on reduction in duty difference. According to USDA monthly report in February, palm oil consumption for India is forecast at 10.6 mt, up 16.7% on year.
CPO futures expected to trade on positive note tracking strong Malaysia prices. However, lower tariff value and higher import figures may pressurize prices. Higher edible oil stocks by 20% compared to last year ports may pressurize prices of edible oil.