FCPO Related News (Mon, Nov 26)

Crude palm oil futures on Malaysia’s derivatives exchange fell Friday after trading in a tight range as investors exercised caution ahead of key export data releases Monday. The benchmark February contract on Bursa Malaysia Derivatives ended 0.7% lower at 2,395 ringgits a metric ton, after moving in a MYR2,380-MYR2,411/ton range.

Expectations of rising palm oil inventories due to lackluster global demand amid seasonally high production in top producers Indonesia and Malaysia weighed on palm oil prices, a Kuala Lumpur-based trader said. Malaysia’s end-November palm oil stocks will likely rise to a new record of 2.65 million-2.70 million tons, up from October’s record high of 2.51 million tons, market participants said.

Favorable weather in Argentina and Brazil, the world’s biggest producers of soybeans after the U.S., has eased concerns about tight global vegoil supplies, the trader said, noting that this was bearish for CPO prices. In addition to fundamentals, macroeconomic factors such as European economic data Thursday, continued concerns over Greek debt and an impending U.S. fiscal impasse also pressured prices, a Singapore-based trader said.

The preliminary Markit euro-zone composite November purchasing managers index came in at 45.8 compared with 45.7 in October, but still indicated that economic activity continued to contract at a fast pace this month. Investors are awaiting a euro-zone finance ministers’ meeting on Monday to work out the bailout package for Greece, the trader said.

Malaysia’s palm oil export data for the Nov. 1-25 period from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., due Monday, will also impact prices, traders said. Nov. 1-20 exports fell 3.3% from a month earlier to 1.02 million tons, cargo surveyor Intertek said Tuesday. SGS Tuesday estimated exports for the same period at 1.01 million tons, down 3.8%.

CPO prices could edge lower if exports decline at a faster rate, traders said. Investors will also seek cues from a conference next week organized by the Indonesian Palm Oil Association in Bali, where eminent vegoil analysts are scheduled to speak.           [Dow Jones Newswire]

KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil futures edged up on Monday on expectations stocks might grow at a slower pace with the market also focusing on Greek financial aid deal set to be signed later in the day that may cheer markets.

Data from a cargo surveyor showed Malaysian exports declined at a much slower pace, putting some pressure on stocks and supporting palm oil prices that have fallen 24.2 percent so far this year on roiling financial markets. "If exports maintain its two percent drop for the full month, it means that although inventory levels are poised to go higher, it may be growing at a slower rate than expected," said Kenanga Investment Bank analyst Alan Lim.

By the midday break, the benchmark February contract on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to 2,406 ringgit ($787) per tonne. Total traded volumes stood at 12,460 lots of 25 tonnes each, slightly lower than the usual 12,500 lots.

Cargo surveyor Intertek Testing Services said palm oil exports in Nov. 1-25 fell 1.8 percent to 1,276,792 tonnes from a month ago, showing slight improvement from a 3.3 percent drop in the first twenty days of this month. Another cargo surveyor, Societe Generale de Surveillance, will release export data for the same period later in the day. The market expects weaker palm oil prices in October and November to stimulate demand from price-sensitive countries like India and Pakistan, translating to higher exports in the weeks to come.

Brent crude held above $111 a barrel on Monday. U.S. soyoil for December delivery inched up 0.2 percent in early Asian hours, resuming trade after Thanksgiving holidays. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange rose 1.1 percent by the midday break.

Technicals showed that a new bullish target of 2,485 ringgit per tonne has been established, aborting its more bearish 2,321 ringgit target previously, said Reuters market analyst Wang Tao. Today’s Support and Resistance for benchmark February contract is located around 2,426 and 2,400 respectively