FCPO Related News (Tues, Apr 23)

Palm oil futures on Malaysia’s derivatives exchange again ease to the lowest level this year, tracking declines in CBOT soyoil futures and concerns about rising stockpiles in Malaysia as export demand slips. Cargo surveyor SGS says April 1-20 exports fell 6.4% on month to 864,206 tons, due to lower shipments to China.

Further declines in palm oil will likely be limited; dealers say CPO looks oversold after a recent selloff and some investors are looking to move back into the market at lower levels. "India has been buying consistently and will continue to buy refined palm olein cargoes as the import parity price is lower than domestic prices," says Vijay Mehta, director at Singapore-based brokerage Commodity Links, who tips stockpiles will fall in the next two months as buyers boost purchases ahead of the Islamic fasting month of Ramadan that starts in July.

Benchmark July CPO ends 1.7% down at MYR2,256/ton after easing to MYR2,250/ton, a level not seen since Dec. 14. CBOT March soyoil is down 1% at 48.69 cents/lb in screen trade.          [Dow Jones Newswire]

Today’s Support and Resistance for benchmark July contract is located around 2,250 and 2,280 respectively.