Sunday, 4 November 2012

FCPO Related News

 Crude palm oil futures on Malaysia’s derivatives exchange fell Friday, tracking declines in Chicago soyoil futures and as investors refrained from aggressive bets ahead of U.S. nonfarm payrolls data due later in the day. The benchmark January contract at Bursa Malaysia Derivatives ended 1.6% lower at 2,496 ringgit a metric ton after trading in a MYR2,490-MYR2,533/ton range.

December soyoil futures on the Chicago Board of Trade were down 1.1% at 49.89 cents a pound at 1052 GMT. Palm oil also fell as "funds and speculative traders sold toward the end of trade on talk that [U.S.] soybean crop size and yields were getting better. Rumors about Indonesian exporters selling [CPO] aggressively into the export market sent some jitters to the futures market here," said Mr. S. Paramalingam, executive director at Kuala Lumpur-based Pelindung Bestari.But Mr. Paramalingam expects palm oil's downside to be limited due to possible flooding in key oil palm growing regions that could disrupt harvesting and curb output in the world's largest producer of palm oil after Indonesia.

"Additionally, palm oil's wide price spread to rival soyoil makes CPO more attractive" to price-sensitive Chinese and Indian buyers, he said. Palm oil is currently trading $280/ton cheaper than soyoil, compared with a historical average of $100/ton.

[Dow Jones Newswire]

Malaysian palm oil futures edged down on Friday to a two-week low, as investors remained cautious on market expectations of record high stocks in October. Prices were earlier locked in a tight range as traders looked for fresh trading cues, although bearish sentiment seemed to dominate despite strong export numbers that could help ease stocks.  "The market is still stuck within a range and finding direction," said a dealer with a foreign commodities brokerage in Malaysia.

"End stocks in October are going to hit higher, around 2.63-2.65 million tonnes. With record-high stocks, the market can't be bullish." The benchmark January contract on the Bursa Malaysia Derivatives Exchange reached a low of 2,490 ringgit, a level last seen on Oct. 18. Total traded volumes stood at 25,866 lots of 25 tonnes each, a tad higher than the usual 25,000 lots.   

For the week, the edible oil posted a 4.1 percent loss as  prices came under pressure on lower November taxes in top producer Indonesia and as Sandy, one of the worst storms to hit the United States in years, triggered fears of slower commodity demand. Malaysian October palm oil exports surged to 1.6 million tonnes, the highest so far this year, thanks to significantly stronger European demand. But concerns remained that stocks could still climb above an all-time high of 2.48 million tonnes in September on seasonally high output. The industry regulator, the Malaysian Palm Oil Board, will release official data for October inventory levels on Nov. 12.

Brent crude held steady near $108 a barrel on Friday as investors look ahead to key jobs data from the United States for more signs of economic recovery, which would boost fuel demand. In other vegetable oil markets, U.S. soyoil for December delivery slipped 1.1 percent in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange also fell, closing 2.2 percent lower.

Technicals showed palm oil will retest a support at 2,497 ringgit per tonne, with a good chance of breaking it and falling to 2,469 ringgit, said Reuters market analyst Wang Tao. Today's Support and Resistance for benchmark January contract is located around 2490 and 2530 respectively.


No comments:

Post a Comment