FCPO Related News

Crude palm-oil futures on Malaysia’s derivatives exchange rebounded Wednesday supported by an improvement in manufacturing data from China, the world’s largest palm-oil consumer after India, and forecasts for higher demand for exports. The benchmark January contract at Bursa Malaysia Derivatives ended 1.5% higher at 2,578 ringgit a metric ton after moving in a MYR2,551-MYR2,578 range.

The preliminary HSBC China Manufacturing Purchasing Managers Index rose to 49.1 in October compared with a final reading of 47.9 in September and is the highest reading since July, suggesting a likely further pick up in economic activity in the world’s second-biggest economy on the back of more accommodative monetary conditions and increasing infrastructure investment.

Market sentiment also got a boost from expectations that palm-oil shipments between Oct. 1 and Oct. 25 probably rose 10% to around 1.29 million tons, a trading executive at a Singapore-based bank said. The executive tipped palm oil to trade in a MYR2,550-MYR2,600/ton range as investors may square off positions ahead of the long weekend. Malaysian markets will be closed Friday for a public holiday.

Firm exports along with potential disruption to harvests from annual floods in important growing regions of Malaysia may prevent further buildup of stockpiles. These hit an all-time high of 2.48 million tons at the end of September. Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., issue Oct. 1-25 shipments Thursday.      [Dow Jones Newswire]

In a bullish sign for palm oil, Brent crude rose on Wednesday, snapping a six-day losing streak, after economic data from China suggested a gradual recovery in the world's No. 2 oil consumer, though weak European data kept the gain slim. In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 inched up 0.6 percent in late Asian trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.1 percent higher.     [Reuters]