Wednesday, April 13, 2016

How to trade Crude Palm Oil Futures ( FCPO ) 13 APR 2016

#FCPO

(April 13): Malaysian palm oil futures rose for the first time in six sessions on Wednesday, tracking competing vegetable oils, in particular sharp gains in soyoil.
Palm dropped 4.8% since the start of its downtrend in the six previous sessions on a strengthening ringgit and better-than-expected March output growth data from the Malaysian Palm Oil Board (MPOB).
The data showed a 16.9% jump in output in March from February, more than double the 8% growth forecast in a Reuterspoll.  
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 0.8% to reach 2,659 ringgit (US$687) per tonne at the close of trade.
Traded volumes were 47,126 lots of 25 tonnes each, higher than a 2015 daily average of 44,600 lots.
"Palm rose because of Dalian, and it should hold due to the fact that the market is a bit oversold," said a trader at a brokerage firm in Kuala Lumpur.
The September soybean oil contract on the Dalian Commodity Exchange rose 1.1% on Wednesday, while the May Chicago Board of Trade soyoil contract rose 1%.
U.S. soybean futures had climbed to an eight-month high on Wednesday due to fund buying and concerns that rains would limit Argentinian harvests, while the world's largest soybean buyer, China, imported 6.1 million tonnes in March, the most it has ever bought in the month of March since at least 2008.

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