FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange edged up Wednesday in rangebound trade as investors refrained from aggressive bets ahead of China’s third-quarter GDP data Oct. 18. The benchmark January contract at Bursa Malaysia Derivatives ended 0.2% higher at 2,471 ringgit a metric ton after moving in a MYR2,456-MYR2,489 range.

Wide price swings in palm oil aren’t expected for the rest of the week as traders assess Malaysia’s oil palm crop situation, a vegoil exporter in Pasir Gudang said. Market participants are also on the lookout for the next export demand data due Oct. 20 by cargo surveyor Intertek Agri Services to see whether "exports have moved out excess palm oil stocks [from Malaysia]," the exporter said. CIMB Research expects rising palm oil stocks to limit any upside for now, although it notes that the current low price may attract buying interest and help draw down stock levels that had climbed to a record 2.48 million tons at end-September due to seasonally higher yields.   [Dow Jones Newswire]

The market is digesting all the news and views spoken yesterday, is expected to remain rangebound until more is known about demand, according to a trader with a local commodities brokerage in Malaysia. Another trader with a foreign commodities brokerage in Malaysia said the upcoming U.S. presidential elections have made global investors more cautious.

On Tuesday, U.S. President Barack Obama and Republican rival Mitt Romney clashed repeatedly on jobs and energy. While market reaction in Asia has been muted, U.S. investors are likely to focus on the outcome as it gives an idea on the kind of economic and financial policies that may come into play after the polls. "The U.S markets are quiet because of the presidential election next month, so people are watching carefully. That's why the (palm oil) market can't move," the Malaysian trader said.

U.S. soyoil for December delivery inched up 0.4 percent in late Asian trade after earlier losses on expectations of higher soybean supplies in the Americas. The most active January 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.1 percent higher.

Technical analysis showed that palm oil remained neutral, trapped in a range of 2,361-2,528 ringgit per tonne, said Reuters analyst Wang Tao.  Today’s Support and Resistance is located around 2,440 and 2,500.   [Reuters]