FCPO Related News (Nov 12, 2012)

Crude palm oil futures on Malaysia’s derivatives exchange fell to a fresh one-month low Friday as investors adjusted positions ahead of a slew of industry data due in the next few sessions. The benchmark January contract at Bursa Malaysia Derivatives ended down 0.9% at 2,316 ringgit a metric ton after falling as much as 1.2% to MYR2,308/ton, the lowest since Oct. 3.

Palm oil inventories will likely remain high well into 2013, despite likely higher demand for palm oil next year. "We expect 2013 to be a good production year for CPO due to an upcycle in biological yields for Malaysia and Indonesia," Macquarie Research said in a report. Market participants are also on the lookout for export estimates for the first 10 days of November that are tipped to reach 518,000 tons, an increase of 16%-23% from the previous month. "Export demand is likely to be good in November, but it remains to be seen whether outbound sales will be good enough to move out the excess palm oil stocks from Malaysia," a physical market broker in Singapore said.

Malaysia exported around 518,688 metric tons of palm oil in the first 10 days of November, up 16% from a month earlier, cargo surveyor Intertek Agri Services said Saturday. The figure matched market expectations of 518,000 tons. Intertek estimated Oct. 1-10 exports at 448,624 tons. Another surveyor, SGS (Malaysia) Bhd., is expected to issue its Nov. 1-10 estimate Monday.

Malaysia produced 1.94 million metric tons of crude palm oil in October, down 3.3% from a month earlier, the Malaysian Palm Oil Board said in a monthly report Monday. End-October palm oil stocks nudged up 1.1% from end-September to an all-time high of 2.51 million tons, although the figure is lower than market expectations of 2.70 million-2.82 million tons, MPOB data showed.
October palm oil exports rose 16% to 1.76 million tons, the data showed.          [Dow Jones Newswire]

U.S. soybean futures plunged 3 percent to their lowest level in more than four months on Friday after the government's latest forecast of this year's crop topped expectations, traders said.              [Reuters]

Benchmark January FCPO opened lower this morning mirroring soyoil's drop after the USDA on Friday forecast the 2012/13 U.S. soybean harvest at 2.971 billion bushels, up from its estimate of 2.860 billion last month. CPO’s downward pressure may be limited due to MPOB crop report which is below market expectations of 2.70 million-2.82 million tons. Today’s Support and Resistance for benchmark January contract is located around  2,220 and 2,340  respectively.