FCPO Related News (Fri, June 21)



KUALA LUMPUR, June 20 (Reuters) - Malaysian palm oil futures ended lower on Thursday, as global economic uncertainty spooked  investors, although losses were limited by robust export data and a weaker local currency that sent prices to a near three-month high inthe morning session. Exports of Malaysian palm oil products for      June 1 to 20 rose 16.2 percent to 928,810 tonnes from the same       period last month, cargo surveyor Intertek Testing Services said on Thursday.



The spike in shipments reflected higher purchases by India and  

Pakistan ahead of the Muslim holy month of Ramadan in July,       when communal feasting typically increases consumption of the     edible oil. Despite supportive fundamentals, investor sentiment was weak, with markets from crude oil to Asian shares tumbling on       Thursday, as slowing Chinese manufacturing activity hurt sentiment even  further after the Federal Reserve signalled it would begin to dial  down stimulus this year.     


"The market ended a little lower because of the fragile sentiment.  

But fundamentals are still supportive with exports rising higher and the ringgit still weak," said a trader with a foreign commodities       brokerage in Kuala Lumpur. The benchmark September contract on the Bursa Malaysia  Derivatives Exchange lost 0.3 percent to close at 2,465 ringgit ($771) per tonne. Prices rose to an intraday high of 2,491 ringgit in the morning, a level last seen on March 25.


Total traded volume stood at 34,107 lots of 25 tonnes each, slightly 

lower than the usual 35,000 lots. Despite the lower market close,     traders said a weak ringgit could still support prices, as it makes the tropical oil cheaper for overseas buyers and improves refining        margins. The ringgit lost nearly 3 percent against the dollar on 

Thursday, with the greenback stronger after the Fed's                      announcement.  In vegetable oil markets, U.S. soyoil for July lost

0.8 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange lost 0.5 percent.