Wednesday, 12 September 2012
FCPO Related News
Sept 12 (Reuters) - Soybean futures on the Chicago Board of Trade climbed 2.6 percent on Wednesday, the biggest rise in three weeks, after the U.S. Department of Agriculture cut its forecasts for U.S. 2012 soybean yield and production, traders said.
Benchmark crude palm oil futures on Malaysia’s derivatives exchange settled higher Wednesday after erasing early losses, as investors shifted focus to a U.S. Department of Agriculture crop report due later in the global day. The benchmark November contract at Bursa Malaysia Derivatives ended 0.4% higher at 2,930 ringgit a metric ton after falling to MYR2,887/ton in intraday trade.
Hopes of further stimulus measures in China are also rising, which is positive for CPO, a Singapore-based trader said, referring to a hint from Chinese Premier Wen Jiabao Tuesday that China is ready to inject massive stimulus into the economy. Morgan Stanley forecast in a report this week that CPO prices could touch as high as $1,200/ton, or about MYR3,685/ton, by the second quarter of next year as demand from China and India is expected to rebound.
Imports of crude palm oil will account for a bigger share of India’s cooking oil imports, with shipments tipped to reach 6.3 million tons in 2012-13, up 17% on year, B.V. Mehta, executive director of the Solvent Extractors’ Association of India, said at an industry conference in Kuala Lumpur Wednesday. (Dow Jones Newswire)
Reuters technicals market analyst Wang Tao said palm oil is likely to drop to 2,869 ringgit per tonne, driven by a downward wave. A rebound from the current level will be limited to 2,947 ringgit.