MERRY CHRISTMAS !




FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange rose Monday in light trade as investors continued to cover short positions ahead of the Christmas holiday Tuesday. The benchmark March contract on the Bursa Malaysia Derivatives exchange ended 0.8% higher at MYR2,428 ringgits a metric ton after trading in a tight MYR2,411-MYR2,437/ton range. The contract ended 3.8% higher Friday.

Soyoil futures and weather-related supply risks also provided support, market participants said. January soyoil futures on the Chicago Board of Trade settled 1.7% higher at 48.71 cents a pound on Friday. Malaysia’s weather office said in an updated advisory Sunday that rainfall is expected over the major oil palm growing states of Johor and Pahang until Wednesday, which can cause floods over low-lying areas. Harvesting rounds could slow down and transportation of the cooking oil from refineries to ports might get delayed if rains persist, a Kuala Lumpur-based trader said, adding that this may push palm oil prices higher.

Investors are keenly awaiting Malaysia’s Dec. 1-25 palm oil exports data from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. scheduled for Wednesday. Prices could rise if the data show exports accelerated in the period, participants said. Malaysia’s Dec. 1-20 palm oil exports fell 1.9% from a month earlier to around 1 million tons, cargo surveyor Intertek Agri Services said Thursday. But another cargo surveyor, SGS (Malaysia) Bhd., said Dec. 1-20 exports rose 0.5% to about 1.02 million tons.

However, palm oil may not hold on to gains for long as some profit taking is expected to set in once investors return from Christmas holidays. Open interest on the BMD was 172,313 lots, versus 186,040 lots Friday. One lot is equivalent to 25 tons. A total of 18,637 lots of CPO were traded versus 33,240 lots Friday.           [Dow Jones Newswire]