FCPO related news

Malaysian crude palm oil rebounded on Wednesday on bargain hunting after prices hit a five-week low earlier in the session, although gains were modest as investors remained worried that the euro zone debt crisis could hurt demand.(Reuters)

CBOT soybean futures rose on renewed fears that the recent  drought and future weather conditions will diminish soybean yield further.

Rainfall in the northern U.S. Midwest is expected over the next 10 days, and will provide some relief for the drought-stricken corn and soybean crops, an agricultural meteorologist said on Tuesday. However, much more rain is needed to ease the drought in U.S.

In Malaysia, demand for palm oil exports is expected to remain weak for the rest of July, and end-July stockpiles will likely rise to 1.80 million - 1.85 million tons compared with end-June's 1.70 million tons. Commodities prices are also likely getting strong pressure from rising Dollar index at the moment. Trading executives tip July 1-25 exports to fall 16%-18% from the same period in June to 990,000 tons, continuing a recent downtrend. 

The market is also watching for signs of El Nino returning to Southeast Asia as the hot and dry weather could hurt palm oil output for top producers Indonesia and Malaysia.

FCPO October opened lower at 2927. Today's support is located around 2910 and could test resistance at 2980.