Thursday, 23 August 2012
FCPO related news
Malaysian crude palm oil futures closed at the highest in more than a month on Wednesday, chasing gains in the soybean oil market after reopening from a long weekend break and getting support from rising exports. (Reuters)
U.S. corn and soybean futures eased on Wednesday after reports of some better-than-expected yield prospects encouraged profit-taking from early week highs that stemmed from the country's worst drought in 56 years.
Cargo surveyor, Intertek Agri Services said Wednesday, Malaysia’s palm oil exports for Aug. 1-20 rose 6% from last month to 809,814 metric tons. Another surveyor, SGS (Malaysia) Bhd., will issue Aug.1-20 shipment data on Aug. 27.
Palm prices may see a temporary increase due to tight supply and strong demand before the festival season in India and China as the discount to soybean oil may boost demand. China celebrates the Mid-Autumn festival at the end of September and India’s Diwali falls in November. According to some analysts, the tropical oil is unlikely to trade above 3,200 ringgit again this year unless tensions in the Middle East spur an increase in crude oil.
Palm oil supply in the coming months is expected to be good and is unlikely to drop below 2 million tons in August and September as output usually peaks between July and October.
A possible El Nino weather phenomenon could also lift commodity prices. A developing El Nino weather event is usually associated with limited rainfall and hot, dry weather in Southeast Asia.