FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended mostly higher Monday, underpinned by gains in Chicago soyoil futures, although the tropical oil’s upside was limited by disappointing export data, market participants said. "Export numbers weren’t fantastic, so investors are cautious about driving prices higher," a trading executive in Kuala Lumpur said, referring to Nov. 1-25 export estimates issued by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd.

The weak export numbers raised expectations that palm oil stock levels in world no. 2 palm oil producer Malaysia could hit another record in November from 2.51 million tons in October. "People are now pegging November stocks at 2.55 million-2.7 million tons, and this could drag palm oil to test MYR2,200/ton again very soon," a Singapore-based trading executive said. Still, some analysts reckoned that palm oil has dipped to levels that are attractive enough to lure buyers away from alternative vegetable oils.

Hamburg-based OilWorld said palm oil stocks in Malaysia may have peaked in October and expects them to decline "on account of weakening production and strong exports." The firm also said global demand for palm oil is set to rise in the coming months owing to production shortfalls of other vegetable oils. Open interest on the BMD was 162,356 lots versus 171,685 lots Friday. One lot is equivalent to 25 tons. A total of 30,722 lots of CPO were traded versus 34,920 lots Friday.           (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.

Cargo surveyor data showed Malaysian exports declined at a much slower pace, easing pressure on stockbuild and supporting palm oil prices that have fallen 23 percent so far this year on roiling financial markets. "If exports maintain their 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.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange rose 1.5 percent to close at 2,432 ringgit ($796) per tonne. Total traded volumes stood at 30,722 lots of 25 tonnes each, higher than the usual 25,000 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, reported a similar 1.9 percent drop for the same period. The market expects weaker palm oil prices in October and November to stimulate demand from price-sensitive countries such as India and Pakistan, translating to higher exports in the weeks to come.

Financial markets across the world were generally optimistic about a euro zone finance ministers meeting on Monday which is pushing for international lenders to release emergency aid and stem the region's debt crisis. Brent crude oil steadied around $111 a barrel on Monday as violent protests in Egypt raised new worries over the stability of the Middle East, reigniting supply concerns. U.S. soyoil for December delivery inched up 0.5 percent in late Asian hours, resuming trade after Thanksgiving holidays. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 1.1 percent higher.           

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 level for benchmark February contract is located around 2,410 and 2,462 respectively.