Monday, 10 September 2012
FCPO Related News
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday, underpinned by firm export demand in the first 10 days of September.
The benchmark November contract at Bursa Malaysia Derivatives ended 0.3% higher at 2,937 ringgit a metric ton after moving in a MYR2,897-MYR2,947 range. "The market moved into positive territory, as the surge in exports could help reduce Malaysian stockpiles that have risen to 2.12 million tons," said a Singapore-based physical market broker.
Industry regulator the Malaysian Palm Oil Board said Malaysia’s August CPO output fell 1.7% from July to 1.66 million tons, while stocks rose 5.8% from end-July to 2.12 million tons, the highest since last October. Cargo surveyor Intertek Agri Services put Sept. 1-10 exports at 453,302 tons, an increase of 27% on month, while another surveyor, SGS, put exports at 460,939 tons, up 30%. According to SGS data, Malaysia’s higher overall palm oil shipments during the Sept. 1-10 period were driven mainly by a more than twofold rise in CPO exports to 167,663 tons, with analysts attributing the surge to Malaysia’s decision earlier last month to allow an additional 2 million tons under a tax-free CPO export quota for the rest of the year.
Exports could rise further in the coming months, as supply of rival soyoil is expected to be at its tightest "as we move into 4Q and 1Q 2013…which therefore bodes well for CPO demand and prices over the next six months," Macquarie Research said in a note.
(Dow Jones Newswire)
Today’s Support and Resistance is located around 2890 and 2990 respectively.