Tuesday, 11 September 2012

FCPO Related News
Crude  palm  oil  futures  on  Malaysia’s   derivatives   exchange   ended   lower   Tuesday,   pressured  by expectations  that  stockpiles  could rise further in September as production increases and demand softens. Investors also liquidated riskier positions  ahead  of  a  key  monthly  report  on  supply  and  demand  due Wednesday from the U.S. Department of Agriculture, trade participants said. The benchmark November contract at Bursa Malaysia Derivatives ended 0.6% lower at 2,919 ringgit a metric ton after falling as much as 2% at MYR2,874/ton, the lowest since August 15.
Analysts have forecast robust palm oil inventories in Malaysia and lower demand due to slowing economic growth. Increased harvesting activities and rising yields could drive end-September and end-October stock levels to 2.21 million and 2.32 million tons, respectively, HwangDBS Research said. Palm oil stockpiles reached 2.12 million tons at end-August, the highest level in 11 months. To aggravate further, Indonesia's stock level appears to be higher than consensus expectations.
Hamburg, Sept 11 (Reuters) – Strong global demand for US soybeans will keep soybean prices firm in the coming months despite the recent fall from early September’s record highs, Hamburg-based oilseeds analyst Oil World said on Tuesday. Global importers will have little choice but to compete for scarce US supplies after poor crops in Brazil and Argentina in early 2012, it said. “Soybean prices have only limited downward scope as long as US exporters face outstanding demand, primarily from China,” Oil World said.

The bullishness may be dampened somewhat by rapid marketing of the US crop as farmer selling is encouraged by huge premiums for nearby delivery”.U.S. grain and soybean futures declined Tuesday, pressured by selling from investors seeking to cut their exposure to risk ahead of Wednesday's monthly crop report from federal forecasters.

Technicals will remain neutral until palm oil falls out of the range of 2,895 to 2,943 ringgit, said Reuters market analyst Wang Tao, adding that a drop below 2,895 ringgit would extend to 2,867 ringgit.

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