FCPO Related News (Fri, Nov 23)

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Thursday, pressured by worries over rising palm oil stocks and technicals-based selling. The benchmark February contract on Bursa Malaysia Derivatives ended 1.3% lower at 2,411 ringgits a metric ton after moving in a MYR2,399-MYR2,449 range. "Trading has been muted as most Malaysian refiners are sitting on sidelines as refinery margins have not been terrific," a physical market broker in Kuala Lumpur said. A number of independent refineries in Malaysia have been running on margins and are usually vulnerable to swings in commodity prices.

Weak export demand over the last two weeks is also weighing on sentiment. Low shipments from Malaysia have raised concerns that palm oil stockpiles in November will hit a new all-time high. Analysts and brokers tipped end-November stock levels at 2.65 million-2.70 million tons, up from October’s record high of 2.51 million tons. Still, some physical traders are optimistic demand will pick up from December. "We’re getting a number of orders for December and Chinese demand will likely improve as buyers stock up on oils ahead of the Lunar New Year in February," a broker in Singapore said.           [Dow Jones Newswire]

SINGAPORE, Nov 22 (Reuters) - Malaysian palm oil futures fell on Thursday, slipping for a third straight day, as slowing exports continued to weigh and investors stayed cautious ahead of a bailout deal for Greece that could boost sentiment. International lenders will meet again next Monday after they failed for the second week to reach a deal to release emergency aid for Greece, but major lender Germany signalled that significant divisions remain.

Cargo surveyor data showed Malaysian exports of palm products for the first 20 days of November inched lower from a month ago, and while the fall was not significant, it nonetheless fuelled concern at a time when stocks had climbed to a record 2.51 million tonnes in October. "The price outlook for crude palm oil has deteriorated. With the cargo surveyors' export data for the first 20 days of November showing a decline of about 3 percent, we see a higher possibility now of November's inventory level to register another record high," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note on Thursday.

Traders will be looking for clues from the meeting next Monday after European demand for palm oil showed signs of slowing. It could take a further hit if international lenders fail again to agree on how to get Greece's debt down to a sustainable level. In related markets, Brent crude was steady near $111 per barrel on Thursday as the Chinese economy showed further signs of recovery, boosting the outlook for oil demand, although the upside was limited as a ceasefire in the Gaza Strip eased concerns over supply. In other vegetable oil markets, the most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.2 percent higher. The U.S. financial markets were closed for the Thanksgiving holiday.

Total traded volumes stood at 36,386 lots of 25 tonnes each, higher than the usual 25,000 lots. Technicals showed palm oil is expected to drop to 2,321 ringgit as it did not break a resistance at 2,464 ringgit, said Reuters market analyst Wang Tao. Today's Support and Resistance for benchmark February contract is located around 2,370 and 2,460 respectively.