Monday, February 29, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 29 FEB 2016
(Feb 29): Malaysian palm oil futures rose on Monday, extending gains for a third session, as traders expect to see inventories dip below the 2 million tonne mark at the end of February.
Traders said that palm also gained on a technical correction despite lower export data, following a five-day fall last week. Palm futures had lost 1.7% last week.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at RM2,548 (US$606.67) per tonne at the close.
Traded volume stood at 31,134 lots of 25 tonnes each.
Friday, February 26, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 26 FEB 2016
Malaysian palm oil futures were headed for a second session of gains on Friday on the back of a weaker ringgit, but the benchmark contract was still set for a weekly fall of around 2 percent.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent at 2,544 ringgit a tonne at the close of trade. Traded volume was 19,403 lots of 25 tonnes each.
"The market is up tracking the ringgit today," said a trader based in Kuala Lumpur. "Also we expect some correction after the week-long sell-off."
Palm futures fell for five consecutive sessions from Feb. 18 to Feb. 22 on concerns over an unexpected rise in production in the first 20 days of February, but edged up on Thursday on expectations of a stock decline at the end of the month.
The weaker ringgit, the currency palm oil is traded in, also supported the vegetable oil in early trade on Friday. It fell 0.1 percent to 4.2200 against the dollar around noon, making palm oil cheaper for holders of foreign currencies.
Thursday, February 25, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 25 FEB 2016
(Feb 25): Malaysian palm oil futures reversed track to gain for the first time in almost a week on market short covering and expectations of lower inventories at the end of February.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at RM2,537 ($601.76) per tonne at the end of the trading day.
Traded volume stood at 47,812 lots of 25 tonnes each.
"We do expect further drawdowns in February stocks, although exports remain lower," said Kuala Lumpur-based trader.
Wednesday, February 24, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 24 FEB 2016
Malaysian palm oil futures fell for a fifth consecutive session on Wednesday, dragged down by surprise signs of improved output and weak export demand.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 1.2 percent to 2,520 ringgit ($597.86) per tonne at the end of the trading day. It earlier hit an intraday low of 2,517 ringgit, the lowest in three weeks.
Traded volume stood at 49,485 lots of 25 tonnes each.
"The downside was triggered by production improvement and poor exports, coupled with weaker overseas market," said a trader based in Kuala Lumpur.
"The ringgit weakness had added support, but the anticipation of lower exports capped the upside."
Data from the Southern Palm Oil Millers' Association on Tuesday showed an unexpected 2.6 percent rise in output between Feb.1 and Feb. 20 compared with the same period in January.
Tuesday, February 23, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 23 FEB 2016
(Feb 23): Malaysian palm oil futures dropped for a fourth straight session on Tuesday to hit their lowest level in more than two weeks, after data from a palm millers' body showed an unexpected rise in production.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 0.6% to RM2,551 at the close of trade, after hitting RM2,542, its lowest since Feb. 5, earlier in the session.
Traded volume stood at 48,314 lots of 25 tonnes each.
"Palm continued (its fall) on technical selling on yesterday's weak closing," said a Kuala Lumpur-based trader with a brokerage firm, blaming the surprise gain in output for the fall.
The Southern Palm Oil Millers' Association released data on Tuesday that showed output up 2.6% between Feb 1 and Feb 20 compared with the same period in January.
Output of the vegetable oil is likely to drop in February due to seasonal trends and the dry weather effects of the El Nino, an industry analyst said earlier.
Industry experts have also forecast growth in global palm oil production to slow this year, but recent rainfall could mute the impact of the El Nino weather pattern which brings crop-damaging dry weather across Southeast Asia.
Monday, February 22, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 22 FEB 2016
Malaysian palm oil futures fell on Monday, handing back gains earlier in the session, sealing a third consecutive day of losses due to an unexpected rise in production numbers.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 0.8 percent to close at 2,566 ringgit ($611.83) per tonne. Palm earlier fell to 2,563 ringgit -- its lowest in more than a week.
Traded volume stood at 50,124 lots of 25 tonnes each.
"The market is finally taking into cognizance that output is increasing," said a trader at a brokerage firm in Kuala Lumpur, citing data from the Southern Palm Oil Millers Association which showed a 2.6 percent output rise for the first 20 days of February compared with the same period in January.
"South America is going to harvest a record (soybean) crop yet again this year. Demand is a major concern in March."
While industry experts have forecast palm oil's global production growth to fall next year, recent rainfall could diminish the impact of the El Nino weather pattern which brings crop-damaging dry weather across Southeast Asia.
Sluggish demand for palm oil has weighed on prices in recent weeks due to slower consumption from top importers China and India, and as the two countries switch to soybean to crush for domestic consumption. Record high stockpiles of South American soybean has been narrowing its spread with palm oil, reducing the demand for palm.
Malaysian shipments of palm oil products fell by 10-12 percent in the first 20 days of February compared with the same time period a month ago, according to cargo surveyor data on Monday.
Palm oil is expected to test support at 2,576 per tonne, a break below which could cause a loss to the next support level at 2,549 ringgit, according to Reuters market analyst for commodities and energy technicals, Wang Tao.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange and the Chicago soyoil contract both gained 0.5 percent.
Friday, February 19, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 19 FEB 2016
(Feb 19): Malaysian palm oil futures retreated on Friday evening to give up gains made earlier in the day as traders expected to see weaker February export demand data in a report on Saturday.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 0.6% to close at RM2,585 (US$615.04) per tonne. It retreated from an intraday high of RM2,629 as prices were supported by a weakening ringgit then.
Traded volume stood at 41,911 lots of 25 tonnes each.
"The reality is now sinking in, as exports are indeed poor," said a trader from a Kuala Lumpur-based brokerage firm.
Another trader said while the market was propped up by a weaker ringgit in morning trade, further gains would be capped due to slowing demand for the tropical oil.
"The market would have gone up further but, because of exports, gains will be capped," he said.
Exports of the tropical oil for Feb 1–20 are expected to be lower compared with the same time period a month ago, indicating weaker demand. The data will be released by cargo surveyors on Saturday.
Malaysian shipments for the first half of February fell between 14% and 16% from the corresponding time period in January, as demand from top palm consumers China and India slowed.
The ringgit fell by 1% against the dollar on Friday evening, reaching 4.2030 and tracking the drop in crude oil prices. Oil futures fell as a record build in US crude stocks drew concerns about global oversupply.
A weaker ringgit, the currency palm oil is traded in, makes the vegetable oil cheaper for holders of foreign currencies.
Palm oil faces resistance at RM2,618 per tonne, and may retrace to a support at RM2,576, said Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange lost 0.1%, while the Chicago soyoil contract for March dropped 0.8%.
Palm, soy and crude oil prices at 1012 GMT
| Contract | Month | Last | Change | Low | High | Volume |
| MY PALM OIL | MAR6 | 2523 | +1.00 | 2521 | 2555 | 1238 |
| MY PALM OIL | APR6 | 2566 | -19.00 | 2565 | 2608 | 4466 |
| MY PALM OIL | MAY6 | 2585 | -15.00 | 2585 | 2629 | 22524 |
| CHINA PALM OLEIN | MAY6 | 5034 | +20.00 | 4974 | 5036 | 961806 |
| CHINA SOYOIL | MAY6 | 5776 | -8.00 | 5736 | 5778 | 487938 |
| CBOT SOY OIL | MAR6 | 31.57 | +2.30 | 31.54 | 31.94 | 5808 |
| INDIA PALM OIL | FEB6 | 485.00 | +2.30 | 484.80 | 490.40 | 731 |
| INDIA SOYOIL | FEB6 | 620.00 | +1.35 | 619.30 | 620.00 | 1190 |
| NYMEX CRUDE | MAR6 | 30.40 | -0.37 | 30.35 | 30.73 | 6344 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = RM4.2030)
(US$1 = 68.5350 Indian rupees)
(US$1 = 6.5197 Chinese yuan)
(US$1 = 68.5350 Indian rupees)
(US$1 = 6.5197 Chinese yuan)
Thursday, February 18, 2016
How to trade Crude Palm Oil Futures ( FCPO ) 18 FEB 2016
(Feb 18): Malaysian palm oil futures fell as the ringgit gained over 1% against the dollar on Thursday, and on expectations of weaker export data towards the end of February.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was down 0.6% at RM2,598 (US$624.52) per tonne in evening trade, ending the day 1.9% lower from its near two-year high of RM2,648 hit on Monday.
Traded volume stood at 42,909 lots of 25 tonnes each.
"It's all ringgit play today, and I expect exports on Feb 20 to come down, but March should see some demand creeping in from the Middle East," said a trader at a brokerage based in Kuala Lumpur.
"They have not been buying much in Jan and Feb so they need to replenish stocks. March is also the onset of summer, so demand will pick up."
The ringgit, the currency palm oil is traded in, hit a session high of 4.1540 per dollar on Thursday, buoyed by Malaysia's better-than-expected gross domestic product data.
A stronger ringgit makes palm oil more expensive for holders of foreign currencies.
Malaysian shipments for the first half of February fell 14%-16% compared with the same period a month ago, according to cargo surveyor data. Exports fell due to weak demand from top palm importers China and India.
Palm oil may retest support at RM2,576 per tonne as its drop from the Feb 15 high of RM2,648 has not finished yet, according to Wang Tao, Reuters market analyst for commodities and energy technicals.
In competing vegetable oil markets, the Chicago soyoil contract lost 0.3%.
Palm, soy and crude oil prices at 1005 GMT
| Contract | Month | Last | Change | Low | High | Volume |
| MY PALM OIL | MAR6 | 2530 | -15.00 | 2502 | 2561 | 468 |
| MY PALM OIL | APR6 | 2585 | -11.00 | 2565 | 2609 | 4107 |
| MY PALM OIL | MAY6 | 2598 | -15.00 | 2580 | 2625 | 22598 |
| CHINA PALM OLEIN | MAY6 | 5000 | +38.00 | 4986 | 5050 | 1054656 |
| CHINA SOYOIL | MAY6 | 5766 | +0.00 | 5756 | 5814 | 420704 |
| CBOT SOY OIL | MAR6 | 31.90 | -2.00 | 31.75 | 32.00 | 8409 |
| INDIA PALM OIL | FEB6 | 486.80 | -2.00 | 485.50 | 488.60 | 652 |
| INDIA SOYOIL | FEB6 | 618.50 | +0.45 | 618.50 | 619.50 | 480 |
| NYMEX CRUDE | MAR6 | 31.36 | +0.70 | 31.01 | 31.72 | 32020 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = RM4.1600)
(US$1 = 68.4900 Indian rupees)
(US$1 = 6.5150 Chinese yuan)
(US$1 = 68.4900 Indian rupees)
(US$1 = 6.5150 Chinese yuan)
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