FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange fell to a three-week low Monday on the back of concerns over rising palm oil inventories and weaker U.S. soy futures prices.The benchmark January contract at Bursa Malaysia Derivatives ended 3.4% lower at 2,411 ringgit a metric ton after tumbling as much as 4.6% to MYR2,381/ton, the lowest level since Oct. 12. 

Palm oil stock levels in the world's No. 2 producer probably surpassed September's record of 2.48 million tons–toward 2.55 million-2.60 million tons, a trading executive in Singapore said ahead of industry crop data due to be issued by the Malaysian Palm Oil Board next Monday.Palm oil "hasn't bottomed out yet", the executive said as many expect stockpiles to reach or surpass 3 million tons early next year–a record high–due in part to tepid demand growth. 

Cautiousness ahead of several key events this week also spurred speculative investors to liquidate riskier positions, a trading executive in Kuala Lumpur said, noting that a fall rival soyoil at the Chicago Board of Trade toward 47.50 cents a pound could weigh on palm oil as well. CBOT December soyoil was down 0.4% at 49.08 cents/lb at 1043 GMT.Regional equities and commodities are mostly lower amid investor caution ahead of Tuesday's U.S. presidential election and China's Party Congress on Thursday.

Today's Support and Resistance for benchmark January contract is located around 2379 and 2447 respectively.