FCPO Related News

Malaysian crude palm oil futures recovered a little on Thursday from a near 8-week low hit the previous day, although traders remained cautious ahead of a slew of key industry reports that could stir more market volatility. (Reuters)

The industry data is due Friday but gains were capped by expectations that data will show that palm oil inventory levels in Jyly had risen to 1.88 to 2 million metric tons from 1.70 million in June due to low demand. July crop data by industry regulator, the Malaysian Palm Oil Board is also due Friday.

The key U.S. government report is expected to slash production estimates due to damage from the worst drought in 56 years. Oil futures rose on Thursday, with Brent gaining for the fifth straight session, lifted by stronger-than-expected economic data from the United States, a lower outlook for North Sea Brent production and persistent hopes for economic stimulus.

Further gains in the palm oil market will likely depend on unfavourable weather, where a developing El Nino weather event that is usually associated with warmer temperatures and limited rainfall could affect Palm Oil production in South East Asia.

FKLI October opened at 2,861 this morning, reached a high of 2874, but dropped sharply to 2847 by mid-day. For today, immediate support is located around 2,863 followed by 2,830 while resistance is pegged at 2,920.