Sunday, 14 October 2012
FCPO Related News
Crude palm oil futures on Malaysia’s derivatives exchange ended off lows Friday, buoyed by technical buying after the Malaysian government announced it will scrap a duty-free export quota and reduce taxes on the tropical oil. The world’s number 2 palm oil producer will abolish the tax-free export quota on CPO effective Jan. 1, 2013 and reduce the export tax on CPO shipments, the Commodities Ministry said Friday as it seeks to grab back market share from top producer Indonesia.
"The reduction of the export duty for CPO will allow the palm oil industry in Malaysia to compete with other palm oil exporting countries in terms of prices," the ministry said in a statement. Malaysia currently has an export duty of 23% on CPO. The benchmark December contract at Bursa Malaysia Derivatives ended 0.9% lower at 2,500 ringgit a ton, after tumbling 6% to MYR2,379/ton.
"Palm oil came off lows toward the end of trade on BMD on technical buying and optimism that the change in Malaysia’s export tax policies could help to boost exports and reduce stockpiles," Chandran Sinnasamy, head trader at Kuala Lumpur-based LT International said. He tips palm oil to trade higher next week toward MYR2,620/ton.
[Dow Jones Newswire]
U.S. soybeans fell more than 1 percent in early trade on Monday, hitting the lowest since the start of July, as grains fell across the board for a second session on waning supply fears and weaker export figures. Brent crude prices fell more than $1 a barrel on Friday, outpacing losses on U.S. crude and deflating the spread between the two contracts after it hit the widest level in a year this week.
Technically, RSI is in the neutral zone indicating that it is neither overbought nor oversold. The averages in MACD are below the zero line of the indicator hinting at bearishness to be intact. Therefore, look for palm oil futures to test the support levels. Supports are at MYR 2,425, 2,350 and 2,300. Resistances are at MYR 2,595, 2,630 and 2,675. However, an unexpected rise above 2,650 MYR/tonne could temporarily postpone the bearishness.