FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Thursday, underpinned by short covering interest and concerns about unfavorable weather for the soy crop in parts of major exporter Argentina. The benchmark February contract at Bursa Malaysia Derivatives ended 0.4% higher at 2,294 ringgits a metric ton after moving in a MYR2,280-MYR2,313 range.

Palm oil got a lift from speculative investors, who "sold positions in soft oils to buy palm oil," a trading executive in Singapore said. Overall market sentiment, however, remains cautious as stockpiles as of end-November probably hit a new high of 2.55 million tons as export demand didn’t rise enough to flesh out inventories from Malaysia, the world’s no. 2 producer. "Sentiment is not that great. Ask any planter in town and you will see that there’s plenty of nearby oil," a physical market broker in Kuala Lumpur said.

"Exports remain lackluster so unless there is a pick-up in demand, we expect stockpiles to remain up," he said and tipped palm oil to trade in a choppy MYR2,250-MYR2,315/ton range as investors position themselves ahead of a November crop report by the Malaysian Palm Oil Board. Maybank Investment Bank analysts said while end-November stockpiles are expected to hit another peak at 2.60 million tons, stockpiles are likely to "recede from here on, owing to declining production," which could lead to a gradual recovery in prices.

In the cash market, refined palm olein for December shipment was offered at $770/ton, while cash CPO was offered at MYR2,100/ton. Open interest on the BMD was 187,660 lots, versus 175,484 lots Wednesday. One lot is equivalent to 25 tons. A total of 45,693 lots of CPO were traded versus 34,987 lots Wednesday.           [Dow Jones Newswire]

KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures edged up 0.4 percent on Thursday as traders bet on demand rising in the face of tighter supplies of competing soyoil due to unfavourable weather in Argentina. Wet weather in No.3 soybean supplier Argentina has delayed plantings, threatening yields and prompting buyers to increasingly turn to Malaysia, where stocks are likely to have risen to a record 2.58 million tonnes in November. Total traded volumes rose to 45,693 lots of 25 tonnes each, compared to the usual 25,000 lots.

Malaysian crude palm oil shipments are expected to rise in the next few weeks, as planters scramble to exhaust an annual tax-free export quota totalling 3.5 million tonnes that is set to expire at the end of December. China, which has been snapping up U.S. soybean cargoes, is looking to import more palm oil before Beijing imposes stricter quality controls on the refined grades on Jan. 1. Brent crude oil steadied below $109 per barrel on Thursday as worries about the global economy and oil demand balanced supply fears stemming from simmering Middle East tensions. In palm oil's competing markets, U.S. soyoil for December delivery edged up 0.7 percent. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange inched up 0.5 percent.

Today’s Support and Resistance for benchmark February contract is located around 2,280 and 2,320 respectively.