Thursday, 13 September 2012

FCPO Related News
Crude palm oil futures on Malaysia’s derivatives exchange ended lower Thursday as ample palm oil supplies amid seasonally higher output season weighed on prices. The benchmark November contract on Bursa Malaysia Derivatives ended 0.6% lower at 2,912 ringgits a metric ton after moving in a MYR2,894-MYR2,948 range.
"Also, palm oil refiners in Malaysia aren’t processing the crude grade into refined products due to weak margins, so expect end-September and end-October inventories to go higher," a Malaysia-based senior executive at a local vegoil refinery said. Stockpiles in the world’s second largest CPO producer rose to 2.12 million tons end-August, the highest level since last October, the Malaysian Palm Oil Board said in a Sept. 10 crop report. (Dow Jones Newswire)
Soybean futures on the Chicago Board of Trade ended modestly higher on Thursday, rebounding from early weakness after the U.S. Federal Reserve announced a fresh phase of monetary stimulus, traders said. The Fed’s move is expected to boost investment in riskier assets including commodities, as have previous stimulus initiatives. Deteriorating soy supplies in the U.S. at a time of rising Southeast Asian CPO supplies are keeping soyoil’s premium at more than $300/ton to palm oil. The wide price gap limits further falls, Rabobank said in a note. "Tight supplies of soyoil will increasingly shift demand to palm oil in coming months."  
However, according to Reuters market analyst Wang Tao, technicals showed palm oil will end its current rebound around a resistance at 2,960 ringgit per tonne and drop back to its Sept. 11 low of 2,874. Industry analyst James Fry told an industry seminar earlier in the day that palm oil prices could fall to 2,450 ringgit per tonne in the first quarter of 2013 if Brent crude dropped to $80 a barrel.

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