FCPO Related News (Thurs, Apr 11)

[ Malaysia April 1-10 Palm Oil Exports  462,276 Tons, up 5.4% on month – SGS]

Crude palm oil futures on Malaysia’s derivatives exchange end down, as refiners sold positions after the ringgit strengthened to 3.0180, the highest level since Jan 21. A firmer ringgit "is hurting refining margins" as ringgit-priced CPO, a key feedstock, becomes more expensive to palm oil processors, a physical market broker in Kuala Lumpur says. Earlier in the day, MPOB says end-March palm oil stockpiles dip 11% on month to 2.17 million tons, on the back of a 10% rise in exports to 1.54 million tons. Benchmark June CPO ends down 1% at MYR2,370/ton; CBOT May soyoil eases 0.1% to 49.92 cents/lb in screen trade.           [Dow Jones Newswire]

SINGAPORE, April 10 (Reuters) - Malaysian palm oil futures edged lower on Wednesday, weighed down by recent strength in the ringgit, although losses were limited after a report showed stocks dropped to their lowest in seven months as exports outpaced weak output growth. Prices were expected to rise after the midday break as the Malaysian Palm Oil Board (MPOB) reported a steep 10.9 percent drop in stocks to 2.17 million tonnes, far exceeding market expectations of a 3.8 percent drop. But the ringgit's recent rise on short-covering ahead of the upcoming election has made crude palm oil more expensive for overseas buyers and lowered refiners' margin, keeping some investors on the sidelines.

The currency hit a near 3-month high against the dollar on Wednesday after the government said the Southeast Asian nation will hold its general elections on May 5. "The market is facing selling pressure with the strengthening ringgit as it dampens refining margin," said a dealer with a foreign commodities brokerage in Malaysia. The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell 1 percent to close at 2,370 ringgit ($783) per tonne -- also the low for the day. Prices touched a high of 2,419 ringgit on Tuesday, a level last seen on March 28. Total traded volumes stood at 34,101 lots of 25 tonnes each, slightly lower than the average 35,000 lots seen so far this year. Technicals showed palm oil is biased to drop to 2,350 ringgit per tonne, as it did not break a resistance at 2,420 ringgit, said Reuters market analyst Wang Tao.

Exports of Malaysian palm oil products for April 1 to 10 inched up 3.5 percent to 456,440 tonnes, compared with 441,025 tonnes shipped during the same period last month, cargo surveyor Intertek Testing Services said on Wednesday. Palm oil stocks are now closer to the psychological 2-million-tonne level. Leading analyst Dorab Mistry has forecast prices could rise to 2,400 to 2,700 ringgit by the end of May as stockpiles fall below that level. In other markets, Brent crude futures steadied around $106 per barrel on Wednesday after China's total imports surged in March, suggesting that recovery in the world's No 2 oil consumer is gathering momentum. In vegetable oil markets, U.S. soyoil for May delivery edged 0.1 percent lower in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.3 percent higher.            [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,340 and 2,400 respectively