Tuesday, 20 November 2012
FCPO Related News (Wed, Nov 21)
Crude palm oil futures on Malaysia’s derivatives exchange nudged lower Tuesday, as investors liquidated positions amid nervousness over Europe and weaker export demand for palm oil, market participants said. The benchmark February contract at Bursa Malaysia Derivatives ended 0.1% lower at 2,457 ringgits a metric ton.Palm oil futures started the day in the green with support from gains in other commodity markets, but prices turned lower as the session progressed, weighed by lower Nov. 1-20 exports. Cargo surveyor Intertek Agri Services said Malaysia exported 1.02 million tons of palm oil in the Nov. 1-20 period, a decline of 3.3% from a month earlier.
Sentiment also turned cautious as investors turned their focus to Europe, a commodities analyst at a Singapore-based bank said. European finance ministers will meet Tuesday to discuss Greece’s next aid tranche. Still, market participants are optimistic that export demand could surge before the end of the year, as exporters "may rush to ship their oils to refineries in China and Europe" before a tax-free export quota on crude palm oil shipments is discontinued at the end of the year. [Dow Jones Newswire]
Investors booked profits after the contract hit a more than two week high earlier in the day and as export demand continued to show signs of slowing. "Traders were pretty hopeful for positive export data, although this decline is not really that significant," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. "Market participants are also anxious as they wait for the outcome of the European financial meeting," he added, referring to a gathering later on Tuesday where euro zone finance ministers are expected to give a tentative go-ahead for the disbursement of 44 billion euros in emergency loans to Greece.
In related markets, Brent crude slipped towards $111 a barrel on Tuesday as ample supplies outweighed worries over fighting between Israel and Palestinians in the Middle East. In other vegetable oil markets, U.S. soyoil for December delivery edged 0.2 percent higher in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.7 percent higher. [Reuters]
Cargo surveyor SGS (Malaysia) Bhd. said Tuesday, Malaysia exported around 1.01 million metric tons of palm oil during the Nov. 1-20 period, a decline of 3.8% from a month earlier. Total traded volumes stood at 38,893 lots of 25 tonnes each, higher than the usual 25,000 lots. Technicals showed a bullish palm oil target of 2,588 ringgit had been aborted, said Reuters market analyst Wang Tao. Today’s Support and Resistance for benchmark February contract is located around 2,430 and 2,490 respectively.