How to trade Crude Palm Oil Futures ( FCPO ) 31 MAR 2016

#FCPO

(March 31): Malaysian palm oil futures fell for a second consecutive day on Thursday evening, as a stronger ringgit dragged the market down, outweighing an improvement in export demand.

Palm oil fell in the previous session as the local currency strengthened against the dollar, but has gained about 8% this month on persistent worries that a crop-damaging El Nino weather event would curb yields.

The ringgit gained 1% to reach 3.9000 versus the dollar on Thursday evening, its strongest level in seven months.

This made palm more expensive for foreign currency holders, as the vegetable oil is traded in ringgit.

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was 0.9% lower at 2,721 ringgit (US$698) per tonne at the closing trade.

Traded volumes were 43,638 lots of 25 tonnes each, compared with a 2015 daily average of 44,600 lots.

Palm oil futures were down on the ringgit factor, said a trader based in Kuala Lumpur, but export data helped to cushion the market.

Malaysian shipments of palm products for March 1 to 31 jumped 22% to 24% from a month earlier, data released by cargo surveyors showed on Thursday, boosted by demand from India.     

Technical charts show palm oil could reach a target of 2,695 ringgit, as it failed to break a resistance at 2,800 ringgit, according to Reuters market analyst for commodities and technicals Wang Tao.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 31 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 30 MAR 2016

#FCPO

(March 30): Malaysian palm oil futures dipped on Wednesday for their first fall after three straight days of gains, as the market weakened on a stronger ringgit.

Palm oil has gained more than 8% so far this month, reaching a two-year high of RM2,793 on Tuesday evening, tracking competing vegetable oils and rising on concerns that dry weather from the El Nino climate pattern will cut output.

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 1.1% to RM2,749 (US$698) per tonne, its sharpest fall in nearly a month. Traded volumes were 44,823 lots of 25 tonnes each, near a 2015 daily average of 44,600 lots.

"It's primarily ringgit play today. There's also some correction as the market has been going up continuously," said a trader from Kuala Lumpur.

The ringgit gained 1.4% to reach 3.9380 against the dollar, its strongest level in seven months, rising along with other emerging Asian currencies on the possibility of slower interest rate hikes in the wake of the Federal Reserve's cautious stance on monetary policy tightening.

A stronger ringgit, in which palm oil is traded, makes it more expensive for foreign currency holders.

Palm oil may retrace to a support at RM2,716 per tonne, as it failed to break a resistance at RM2,776 again, technical analysis by Reuters market analyst Wang Tao showed.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 30 MAR 2016

#FKLI

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 29 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 29 MAR 2016

#FCPO

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 28 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 28 MAR 2016

#FCPO

 (March 28): Malaysian palm oil futures surged to a two-year high on Monday, rising for a sixth session out of eight, on persistent worries that a crop-damaging El Nino weather event would curb yields.

Palm oil experts had forecast at a Kuala Lumpur industry conference earlier in March that benchmark prices could soar to as much as 3,000 ringgit a tonne by mid-year, up around 10% from current levels, due to El Nino.

"The market is technically still speculative. It's still reacting to bullish news, as was spoken at the conference," said a trader from a brokerage firm in
Kuala Lumpur. "Price levels of 3,000 ringgit is coming, but you also have to look at the overall scenario of the market, including demand."

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 1.3% to reach 2,758 ringgit (US$688) per tonne at the close of trade. It earlier hit 2,764 ringgit in the afternoon, the strongest since March 21, 2014.

Traded volumes were 39,600 lots of 25 tonnes each, versus a 2015 daily average of 44,600 lots.

Leading vegetable oils analyst Dorab Mistry estimated on Monday that annual palm output from Malaysia, the world's second largest grower after Indonesia, will fall by 2 million tonnes in the oil year ending September 2016.

Mistry maintained his estimate for Indonesian palm production to fall by 1.2 million tonnes.

How to trade Crude Palm Oil Futures ( FCPO ) 25 MAR 2016

#FCPO

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 25 MAR 2016.bmp

#FKLI

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 24 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 24 MAR 2016

#FCPO

(March 24): Malaysian palm oil futures dropped on Thursday for a second consecutive session, tracking falls in competing overseas oils and as fresh rains reduced concerns over slowing output.

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed nearly 1% down at RM2,674 (US$664) a tonne. Traded volumes were 46,085 lots of 25 tonnes each in the evening, versus a 2015 daily average of 44,600 lots.

"The market was heavily overbought, so there should be corrections around the RM2,600-RM2,700 level. We also saw recent rains in Kuala Lumpur and other places," a Kuala Lumpur-based trader said.

Palm oil rose in the four sessions through Tuesday to a two-year high on fears that an El Nino weather pattern would damage fresh fruit yields and lower production.

Rains across Malaysia, the world's second-largest palm producer, could lessen the impact of El Nino, a dry weather phenomenon that brings scorching heat across Southeast Asia.

However, official data on February crude palm oil output in Indonesia, the world's top palm producer, is expected to show further declines from January because of droughts and forest fires, a Reuters survey showed.

Crude palm oil production could have droppped to 2.30 million tonnes in February, according to the median estimate in a survey of two industry associations and one of the country's largest planters. That is down from 2.44 million tonnes in January and the lowest since February 2015.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 23 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 23 MAR 2016

#FCPO

(March 23): Malaysian palm oil futures fell on Wednesday for the first time in five sessions, dropping from a two-year high in the previous session, as the market corrected on a stronger ringgit and declines in competing vegetable oils traded in overseas markets.  

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 0.4% to RM2,700 (US$676) per tonne at the end of the trading day.

Traded volumes were 45,064 lots of 25 tonnes each on Wednesday, compared with a 2015 daily average of 44,600 lots.

"This is a long overdue correction," said a Kuala Lumpur-based trader. "Further strengthening in the ringgit and the overseas retreat could have triggered the correction from the technically overbought market."

The ringgit, the currency palm oil is traded in, broke through a key psychological level of 4.000 per dollar to strengthen to 3.9930 on Wednesday evening. A stronger ringgit makes palm oil more expensive for those paying in foreign currency.

Palm oil has risen in the four previous sessions and has gained about 2% since the start of the week. It hit RM2,726 in intra-day trading on Tuesday, the strongest level since March 2014. Prices have been lifted by concerns that a crop-damaging El Nino will reduce output and tighten supplies.

How to trade Crude Palm Oil Futures ( FCPO ) 22 MAR 2016

#FCPO

(March 22): Malaysian palm oil futures rose to a two-year high on Tuesday, stretching gains into a fourth session, as improving exports and worries about lower output due to an El Nino weather pattern underpinned prices.

Palm oil prices have risen more than 8% this year and industry experts see gains of up to another 10% from current levels by June, driven by forecasts global output will drop by 2–3 million tonnes in 2016 as dryness linked to El Nino hurts yields.   

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 1% to reach RM2,712 (US$678) per tonne in closing trade.

Trade volumes were 45,656 lots of 25 tonnes each, versus a 2015 average of 44,600 lots traded in a day.

The contract hit RM2,726 earlier in the day, breaching the previous two-year top of RM2,706 reached on Monday. Technicals show palm prices could test resistance at RM2,729 and rise further to RM2,776.

A trader based in Kuala Lumpur attributed Tuesday's gains to a rise in competing soyoil markets and dryness linked to El Nino. Prices are also drawing support on indications of a pick-up in exports ahead of an April tax, the trader added.

Malaysia, the world's No.2 producer of palm after Indonesia, raised its tax on crude palm oil exports to 5% for April, ending a duty-free policy held since May 2015 and encouraging buyers to stock up before the tariff kicks in.

Cargo surveyor data show exports of Malaysian palm oil products rose 20%–23% over March 1–20, compared with the same period last month, led by stronger demand from India.

In competing vegetable oil markets, the September soybean oil contract on the Dalian Commodity Exchange gained 0.8%, while the May Chicago Board of Trade soyoil contract rose 0.5%.

Crude palm kernel oil's offer price stood at RM5,291.07 per tonne on Tuesday evening, according to assessment prices by Thomson Reuters. Traders say prices surged in recent weeks due to tight supplies as El Nino also dented output of crude palm kernel oil.

"There was some hot and dry weather which affected crops this year. It affected production big-time, not only in palm but also in kernel oil," said another trader from Kuala Lumpur, adding that kernel oil's prices typically rally higher than CPO's due to its less liquid market.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 22 MAR 2016

#FKLI

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 21 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 21 MAR 2016

#FCPO

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 18 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 18 MAR 2016

#FCPO

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 17 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 17 MAR 2016

#FCPO

(March 17): Malaysian palm oil futures on Thursday registered their biggest gains so far this week, bolstered by concerns over weak output caused by El Nino-related dryness.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 1.7% to close the trading day at RM2,654 (US$654) per tonne.

It earlier hit an intraday high of RM2,657, its loftiest since April 2014.

Trade volumes were 62,763 lots of 25 tonnes each at the end of the day, compared with 47,226 lots the day before.

"The ringgit is so strong, but we are still going up on concerns (about the) production line," a trader based in Kuala Lumpur said.

"Weather patterns could affect production ... There is fear building up in people. Other oils are also up, so palm is marginally held by that."

A crop-damaging El Nino is forecast to lower global palm oil production by 2–3 million tonnes this year, according to leading industry analysts.

The weather phenomenon brings scorching heat across Southeast Asia, impacting palm's fresh fruit yields and lowering production.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 16 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 16 MAR 2016

#FCPO

 (March 16): Malaysian palm oil futures recovered losses from early trade and nudged higher on Wednesday due to expectations of lower output growth from a crop damaging El Nino.

Industry experts at a conference in Kuala Lumpur last week had forecast El Nino's dry weather effects to lower global palm production by 2–3 million tonnes, potentially pushing benchmark prices up to range between RM2,700–RM3,000 a tonne by June.

Palm had earlier suffered its steepest drop in two weeks, tracking declines in rival vegetable oils and feeling the pressure of slowing demand, while traders booked profits.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.04% to reach RM2,611 (US$631) per tonne at the end of the trading day. It reached a one-month high of RM2,632 earlier this week on Monday.

Trade volumes were 47,226 lots of 25 tonnes each on Wednesday at the close of trade.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 15 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 15 MAR 2016

#FCPO

(March 15): Malaysian palm oil futures rose on Tuesday as expectations of lower production and a weaker ringgit underpinned prices, shrugging off an announcement of a 5% tax on crude palm oil (CPO) exports that could hurt demand.

A government circular on the Malaysian Palm Oil Board website showed a CPO export tax will be implemented in April, ending a duty-free policy held since May 2015.

"The tax was expected, the market rose more on weather concerns and the weak ringgit," said a trader from Kuala Lumpur, adding that positive export numbers were also buoying prices.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at RM2,611 (US$632) per tonne at the close of trade. Trade volumes stood at 42,345 lots of 25 tonnes each in the trading day.

The contract touched a one-month high of RM2,632 on Monday.

Palm oil prices are expected to climb to RM2,700–RM3,000 by June as dryness linked to El Nino hurts production, industry experts said last week. They see global output falling by 2 million-3 million tonnes in 2016.  

Also, palm oil prices are drawing support from Intertek Testing Services data showing a 10.5% month-on-month rise in exports for the first half of March.

Societe Generale de Surveillance, however, reported a 1.1% export decline over the same time period.

How to trade Crude Palm Oil Futures ( FCPO ) 11 MAR 2016

#FCPO

 (March 11): Malaysian palm oil futures jumped in Asian evening trade on Friday, rebounding from losses a day ago, as low supply concerns and bullish price sentiments from an industry conference fueled the market rally.

Experts at an industry conference in Kuala Lumpur on Wednesday had forecast palm to trade at 2,700-3,000 ringgit per tonne by June, as a crop-damaging El Nino is expected to impact yields and lower annual output growth.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange surged 2.4% to 2,608 ringgit (US$638) per tonne at the end of the trading day. It earlier reached a new three-week and intraday high of 2,612 ringgit.

Traded volume stood at 48,005 lots of 25 tonnes each on Friday.

"It's a supply driven rally, aided and abetted by speculative buying and massive short covering," said a trader from Kuala Lumpur.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 11 MAR 2016

#FKLI

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 10 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 10 MAR 2016

#FCPO

(March 10): Malaysian palm oil futures reversed gains to fall from a near three-week high on Thursday evening, due to sluggish export demand and a stronger ringgit.

The ringgit gained 0.8% in evening trade to touch 4.0900 against the dollar. Palm oil becomes more expensive for holders of foreign currencies on a stronger ringgit, the currency palm oil is traded in.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange lost 0.4% to 2,548 ringgit (US$623) per tonne at the end of the trading day, after earlier reaching an intra-day high of 2,577 ringgit.

Traded volume stood at 45,453 lots of 25 tonnes each on Thursday.

The market had earlier rallied as leading analysts at a Kuala Lumpur conference forecast lower output, due to the crop-damaging El Nino phenomenon.

February output from Malaysia, the world's second largest producer of palm oil, fell to a nine-year low of 1.04 million tonnes, declining 7.7% from a month ago, data from the Malaysian Palm Oil Board (MPOB) showed on Thursday.

"February's end-stocks were within trade expectations, demand has yet to improve," said a trader from a brokerage firm in Kuala Lumpur.

There was a rise in exports for the first 10 days of March, but it is against a low base during the same period in February due to the Lunar New Year celebrations, said the trader, adding that the stronger ringgit led to some speculative selling in the market.

Export data from two cargo surveyors showed shipments rising to 327,551 tonnes in the first 10 days of March.

"Cargo surveyor export data is not exciting... At this rate, for the full month of March we will reach 1 million tonnes only," said another trader.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 9 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 9 MAR 2016

#FCPO

(March 9): Malaysian palm oil futures surged on Wednesday, as leading industry analysts raised concerns over production due to dry weather in key producing countries and forecast a rally in prices in coming months.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange ended up 1.15% at 2,558 ringgit (US$620.72) per tonne. The contract earlier rose to 2,563 ringgit, the highest since Feb 29.

El Nino weather is likely to hit palm plantations in top-producing Indonesia and Malaysia and reduce global supplies in 2016, leading edible oil analysts told an industry conference in in Kuala Lumpur on Wednesday.

"Analysts' comment over the production shortfall triggered buying," said a Kuala Lumpur-based trader.

Malaysian palm oil futures will climb nearly 20% to around 3,000 ringgit a tonne, as dry conditions brought by the El Nino weather pattern curb output in major producers, said top industry analyst Dorab Mistry.

James Fry, chairman of commodities consultancy LMC International, said global palm oil production could fall by over 2 million tonnes this year.

Palm oil prices are expected to recover to trade around 2,700-3,000 ringgit a tonne by June, Thomas Mielke, editor of Hamburg-based newsletter Oil World said.

Traded volume stood at 25,720 lots of 25 tonnes each, higher than the 20,334 lots traded on Tuesday.

How to trade Crude Palm Oil Futures ( FCPO ) 8 MAR 2016

#FCPO

 (March 8): Malaysian palm oil futures eased on Tuesday, following losses in soyoil, though the downside was restricted by a drop in the ringgit and hopes that top-producing countries will now use more tropical oil for biodiesel production.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed down 0.35% at RM2,529 (US$615.33) a tonne, having risen by 1.2% on Monday.

Earlier in Tuesday's tading palm touched RM2,551, its highest since Feb 29.

In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange was little changed while the Chicago soyoil contract fell by 0.5%.

"The ringgit has started falling again. It should limit the losses in palm oil," the trader said.

The Malaysian currency lost 0.74% against the dollar, making the tropical oil, which is priced in the ringgit, cheaper for holders of other currencies.

The market is also receiving support from attempts by leading producers to raise the amount of palm oil used in biodiesel, traders said.

"It seems Malaysia and Indonesia are determined to increase palm oil blending in biodiesel. It will help in bringing down inventory in coming months," one Kuala Lumpur-based trader said.

Malaysia was confident that it would implement its programme for biodiesel to have a bio-content of at least 10%, Plantations Minister Douglas Uggah Embas said at a palm oil conference in Kuala Lumpur.

Traded volume stood at 20,334 lots of 25 tonnes each, significantly below the 42,774 lots traded on Friday.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 8 MAR 2016

#FKLI

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 7 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 7 MAR 2016

#FCPO

(March 7): Malaysian palm oil futures jumped on Monday to their highest in a week, tracking gains in rival soyoil, although firmness in ringgit capped the upside.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed up 1.2% at RM2,537 (US$621.81) per tonne. Palm earlier rose to RM2,543, the highest since Feb 29.

"Palm oil has been getting good support from a rebound in crude oil and soyoil prices," said a Kuala Lumpur-based trader.

"The strengthening Malaysian ringgit is limiting the upside."

The Malaysian currency firmed 0.75% versus the dollar, making the tropical oil which is priced in the ringgit expensive for holders of other currencies.

Traded volume stood at 21,165 lots of 25 tonnes each, significantly below 42,774 lots traded on Friday.

"Volumes were thin since people want to know what key analysts and producers say in the conference," said the trader, referring to the Palm and Lauric Oils Outlook Conference in Kuala Lumpur from March 7 to March 9.

Palm oil may break a resistance at RM2,538 per tonne, and rise into a range of RM2,559–RM2,580, said Wang Tao,Reuters market analyst for commodities and energy technicals.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 4 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 4 MAR 2016

#FCPO

 (March 4): Malaysian palm oil futures rose on Friday tracking competing vegetable oils, gaining for a second consecutive day, although upsides were seen capped by a stronger ringgit.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.24% at 2,507 ringgit (US$610) per tonne at close of trade on Friday.

Palm was trending largely lower this week, falling for two sessions and hitting a one-month low of 2,470 ringgit on a stronger currency, before reversing course to gain at the close of trade on Thursday.

Traded volume stood at 42,774 lots of 25 tonnes each on Friday.

"Soybean oil closing was firmer yesterday, which expanded to this morning. The sentiment is more supportive today," said a trader based in Kuala Lumpur.

"However the ringgit is still strong, that seems to be the factor to limit palm's upside."

A stronger ringgit, the currency palm oil is traded in, makes the vegetable oil more expensive for holders of foreign currencies. The ringgit hit 4.1110 per dollar, gaining 0.5% late on Friday.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 3 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 3 MAR 2016

#FCPO

(March 3): Malaysian palm oil futures recovered on Thursday after two straight days of declines, tracking competing vegetable oils to end the trading day higher, despite a stronger ringgit.     

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 0.4% to reach RM2,501 (US$605.57) per tonne at the close.

Palm oil earlier hit RM2,470, the weakest since Feb 2 after also hitting one-month lows in the two previous sessions. Traded volume stood at 49,846 lots of 25 tonnes on Thursday.

"The market recovered from its oversold condition ... and tracking soyoil recovery," a trader based in Kuala Lumpur said.

Palm was pressured for most of the day by a stronger ringgit, which gained 0.7% against the dollar to reach 4.1300 in evening trade. Palm oil is supported by a weaker ringgit, the currency it is traded in, as it makes the tropical oil cheaper for holders of foreign currencies.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 2 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 2 MAR 2016

#FCPO

(March 2): Malaysian palm oil futures fell to their lowest in a month on Wednesday, weighed down by a stronger ringgit and weak export demand.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed 1.9% lower at its intra-day low of 2,488 ringgit (US$598) per tonne at the end of the trading day. The contract closed at its weakest level since Jan 29.

Traded volume stood at 31,613 lots of 25 tonnes each.

"The dollar is weaker and demand is still slow," said a trader from a brokerage firm in Kuala Lumpur.

A weaker dollar on Wednesday pushed the ringgit to 4.1600, up 0.1% against the greenback in evening trade. A stronger ringgit, the currency palm oil is traded in, makes the tropical oil more expensive for holders of foreign currencies.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 1 MAR 2016

#FKLI

How to trade Crude Palm Oil Futures ( FCPO ) 1 MAR 2016

#FCPO