FCPO Related News (Mon, Apr 15)

[Malaysia April 1-15 Palm Oil Exports 648,275 Tons, down 4% on Month – Intertek]

Malaysian palm oil futures dropped to a near two-week low in choppy trade on Friday, with no clear guidance from overseas markets and investors worried a bird flu outbreak in China could crimp demand from the world's second largest edible oil buyer.  Crude palm oil futures on Malaysia’s derivatives exchange end lower, weighed by a ringgit which strengthened this week to a three-month high after the announcement of a general election. "A firmer ringgit hurts [palm oil] refining margins," says a trading executive at a Kuala Lumpur-based investment bank. Palm oil is unlikely to gain much because of increasing soy supply in South America and ample palm oil port stocks at major consumers China and India, market participants say.

Brokers tip near-term support at MYR2,300/ton. Benchmark June CPO ends 0.3% lower at MYR2,345/ton; CBOT May soyoil is 0.2% higher at 49.87 cents/lb in screen trade. Crude palm oil futures on Malaysia’s derivatives exchange end lower as investors book profits after failing to see follow-through buying interest. "Prices are under selling pressure as the demand offtake remains low as major consuming countries like China are well stocked," says a senior trader at a foreign trading house.

Today’s Support and Resistance for benchmark June contract is located around 2,300 and 2,350 respectively.