How to trade Crude Palm Oil Futures ( FCPO ) 5 FEB 2016

#HowtotradeFCPO

(Feb 5): Malaysian palm oil futures hit their highest level in nearly 21 months on Friday and posted their biggest weekly jump in over four months on short-covering ahead of a long weekend and concerns over declining production.

The palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed 1.7% higher at RM2,575 (US$619.74) per tonne, after rising as much as 2.9% to RM2,604, its highest level since May 16, 2014, earlier in the session.

Palm posted a weekly gain of 5.4%, its biggest since the week ended Sept 25, 2015.

Traded volume stood at 56,077 lots of 25 tonnes each.

"There was massive covering of both buy and sell towards the end," said a trader with a brokerage firm in Kuala Lumpur, referring to short-covering before the four-day weekend.

Markets will be closed on Feb 8 and 9 for the Lunar New Year holidays.

"The prevailing worry is that production this month is expected to be lower given the lesser number of working days. End-stocks of around 2.1 million tonnes are low enough for prices to further rally," said the trader.

Malaysian inventories in January are forecast to have declined 9.3% on month to 2.39 million tonnes, according to aReuters poll.

Production is also expected to have declined 14% to 1.2 million tonnes, in line with seasonal trend and as the dry weather impact from the El Nino weather event kicks in this year.

The Malaysian Palm Oil Board (MPOB) is due to release January data on Feb 10.

In competing vegetable oil markets, the US March soyoil contract gained 0.9%, while the May soybean oil contract on the Dalian Commodity Exchange rose 1.2%.

Palm, soy and crude oil prices at 1026 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	FEB6	2520	+67.00	2478	2520	403
MY PALM OIL	MAR6	2516	+25.00	2493	2547	3017
MY PALM OIL	APR6	2575	+44.00	2534	2604	28459
CHINA PALM OLEIN	MAY6	4834	+46.00	4774	4848	488836
CHINA SOYOIL	MAY6	5736	+70.00	5666	5750	408818
CBOT SOY OIL	MAR6	31.51	+3.00	31.31	31.60	5691
INDIA PALM OIL	FEB6	463.30	+3.00	461.10	466.00	2423
INDIA SOYOIL	FEB6	620.25	+1.30	618.50	621.60	22060
NYMEX CRUDE	MAR6	32.11	+0.39	31.37	32.36	52950

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

(US$1 = RM4.1550)
(US$1 = 67.6600 Indian rupees)
(US$1 = 6.5722 Chinese yuan)