FCPO related news

Crude palm oil futures on Malaysia’s derivatives exchange on Tuesday gave back earlier gains on the back of profit-taking and general caution ahead of a European Central Bank policy meeting later this week.

The benchmark November contract at Bursa Malaysia Derivatives ended 0.5% lower at 3,058 ringgit a metric ton after rising as much as 0.9% to MYR3,100/ton, the highest level for the benchmark since Aug. 27.

September soyoil on the Chicago Board of Trade was up 1.5% at 57.48 cents a pound by the end of trade on BMD. "Palm oil prices drifted lower as the market lacked speculative buying support," a trading executive at a Kuala Lumpur-based brokerage said. "For now traders are likely to play it safe, so we expect the market to trade rangebound ahead of MPOB crop data next Monday."

Nevertheless, the latest export estimates will likely underpin palm oil prices, as firm exports could slow the buildup of inventory levels. Cargo surveyor Intertek Agri Services said last week that August exports rose 18% from the previous month to 1.45 million tons. SGS (Malaysia) Bhd. put exports at 1.43 million tons in its Tuesday estimate, an increase of 20% compared with its July estimate.

( Dow Jones Newswire)

Palm oil futures had to retrace after hitting psychological resistance level around 3,100. Soy oil price correction after hitting new high also curbed palm oil futures price. Today’s Support and Resistance  for benchmark November will be located around 3,000 to 3,095 respectively.