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

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 Malaysian palm oil futures bounced back from early losses to close 1.3% higher on Thursday, as the market recovered from an oversold state, while gains in soy also boosted sentiment.

Palm lost 10.2% in June on weak fundamentals, as traders expect seasonal output to rise from now until the final quarter of the year, while exports are also seen slowing down until the next major festive season of Diwali in late October.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.3% higher at RM2,353 (US$584.60) per tonne on Thursday.

The contract hit a seven-month low of RM2,317 on Wednesday and posted its fourth straight weekly fall. Palm lost 13.7% this quarter, its first quarterly drop since the January-March period of 2015 and the biggest since the three months ended September 2012.    

Traded volumes stood at 50,864 lots of 25 tonnes each on Thursday.

"The market was oversold and is now going for a retracement," said a trader from Kuala Lumpur.

"It was also up on external markets, Chicago Board of Trade soyoil and Dalian refined, bleached and deodorized palm olien."

Malaysian palm oil shipments fell 9-11% in June from a month earlier, data released by cargo surveyors on Thursday showed, as demand for the tropical oil weakened after Ramadan.

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

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

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Malaysian palm oil futures fell to a seven-month low on Wednesday, dragged down by poor fundamentals and a stronger ringgit.

Palm oil has been on a downward trend since the beginning of June, posting three straight weekly falls and losing 9.2% so far this month.

The tropical oil has been recording losses, as traders forecast higher seasonal output in the coming months, while exports for June have fallen after they peaked in May ahead of Ramadan, contributing to rising stockpiles.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange closed 2.3% lower at 2,323 ringgit (US$575) per tonne. They had earlier fallen to 2,317 ringgit, a level last seen on Dec 2, 2015.

Traded volumes stood at 59,150 lots of 25 tonnes each.

"Crude palm oil is down on ringgit strength and the prevailing supply and demand situation," said a trader in Kuala Lumpur. "Unless something major occurs which can disrupt that, palm will keep falling."

The ringgit had gained 0.9% to 4.0330 per dollar by Wednesday evening, making palm oil more expensive for foreign currency holders.

Malaysian exports for June are seen declining from the previous month, and will remain slow as the end of Ramadan approaches and until the next festive season of Diwali in October.

Soy's falling prices weigh on palm, as the commodity becomes more competitive as a substitute for palm.

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

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

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Malaysian palm oil futures closed slightly lower on Tuesday evening on the back of slow export demand, erasing gains earlier in the day when prices were tracking stronger performing soy.

Palm oil output is also forecast to rise in line with the seasonal growing trend from now until the end of the year, contributing to palm's bearish outlook.

Benchmark palm oil futures for September delivery  on the Bursa Malaysia Derivatives Exchange dropped 0.04% to RM2,378 (US$584) per tonne in the evening.

Traded volumes stood at 49,328 lots of 25 tonnes each, higher than the 2015 daily average of 44,600 lots.

Palm has declined 9.2% so far in June on expectations of rising output amid falling demand, which would be its sharpest monthly fall in nearly two years. A volatile ringgit also contributed to palm's losses this month.

"The market has mixed reactions at the moment. Industry players say output is going up and exports are going down, resulting in a build-up of stocks in the coming months," said one trader from Kuala Lumpur.

Another trader said the slow demand weighed on the palm market in the evening, with buyers expecting a reduction in volumes after peak Ramadan demand in May.

Malaysian palm oil shipments fell about 10% in June 1-25 compared with May 1-25, cargo surveyor data showed on Monday, as exports weakened with the end of Ramadan approaching.

Muslims worldwide mark the holy month of Ramadan with day-long fasts followed by communal feasting at the end of the day, commanding higher palm oil usage for cooking purposes. The festival is expected to end on July 5.

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

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How to trade Crude Palm Oil Futures ( FCPO ) 27 JUNE 2016

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 Malaysian palm oil futures took a slight dip in evening trade on Monday after seeing gains in the morning, as traders sold on poorer performing exports and a volatile ringgit.

The ringgit, which tumbled in recent sessions on concerns over Britain's vote to exit the European Union, fell 0.2% to reach 4.1000 against the dollar in the evening. A falling ringgit, palm's currency of trade which dropped 1.9% on Friday, usually makes the vegetable oil cheaper for holders of foreign currencies.

A trader from Kuala Lumpur however said the ringgit's instability, coupled with slowing exports, has caused buyers to put purchases on hold.

"The months ahead are going to be difficult for exports. Volatility in the ringgit is soaring, keeping consumers at the sidelines," he said."

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange fell 0.04% to RM2,378 (US$580) per tonne at the close of trade. Traded volumes stood at 44,954 lots of 25 tonnes each on Monday evening.

Palm has declined 9.2% so far this month, it's sharpest monthly fall since August 2014. Palm had earlier declined for three consecutive weeks as traders forecast rising output and slowing exports.

Production rose nearly 5% month-on-month in May, and is set to gain in line with the seasonal growing trend from now until the last quarter of the year.

Malaysian palm oil shipments however have declined in June as demand slows with the end of the Ramadan holiday coming soon. Exports from June 1-25 fell 9-10% from the corresponding time period last month, according to cargo surveyor data on Monday.

The holy month of Ramadan sees Muslims around the world break day-long fasts with communal feasting, incurring higher palm oil demand for cooking purposes the month before the celebration starts.

Palm oil exports usually taper off after the end of Ramadan until renewed demand starts for the Hindu festival of Diwali in October.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 27 JUN 2016

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Brexit impact: Markets plunge, plummet, tumble, nosedive and more

• Gold posts biggest rally since 2008 on shock Brexit vote, Gold soared as much as 8%
• Crude oil prices slammed after Britain votes to leave EU, Oil prices slipped back by around 4%.
• The Dow closed down 611 points, 3.4%
• The Nikkei Stock Average closed down 7.9%, its steepest one-day loss for five years.
• Hong Kong-listed shares in British banks HSBC PLC and Standard Chartered PLC dropped by 6.6% and 9.5% respectively, leading the Hang Seng Index down 2.9%.
• The benchmark FTSE 100 fell 3.7% to 6,106.47, although it had been down by as much as 8.7% as it hit an intraday low of 5,786.74. The blue-chips index was moving toward its largest daily percentage loss since March 2009
• The British pound was the biggest casualty, dropping to its lowest level in more than 30 years against the U.S. dollar. 
• Ringgit pares biggest drop since 1998 as investors digest Brexit

After Brexit, What Next?

1. Waiting for regulators to formally announce the extension of the Hong Kong-Shanghai Stock Connect trading link to Shenzhen, with many market participants expecting the official green light in July.  What can we trade:  Mini Hang Seng futures, Mini H-Shares Index futures, FTSE China A50 futures
2. FOMC meeting july 26-27 : What can we trade:  Mini Hang Seng futures, Mini Dow futures, E-Micro Gold,Soybeans/Soybean Oil futures FKLI futures, FCPO futures
3. United States presidential election, 8 November 2016. What can we trade:  Mini Hang Seng futures, Mini Dow futures, E-Micro Gold futures, FKLI futures, FCPO futures

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

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 Malaysian palm oil futures fell on Friday evening for a third consecutive week of losses, tracking declining rival vegetable oils and amid investor concerns over Britain's vote to leave the European Union.

The market fell for two sessions this week before paring losses in late trade on Thursday, but declined on Friday to fall 2.9% this week.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange fell 0.2% to RM2,379 (US$582) per tonne in the evening, unchanged from during the midday break. Traded volumes stood at 65,216 lots of 25 tonnes each at the close of trade.

Palm has declined in nearly all of its sessions in the last three weeks as poor fundamentals weighed on prices.

Traders expect output to rise in line with the seasonal trend and for exports to weaken after Ramadan demand in the coming months. The Muslim holy festival entails day-long fasts broken by communal feasting, incurring higher palm oil demand for cooking the month before Ramadan.

"The vote counting in favour of a Brexit caused a lack of market confidence," said a trader from Malaysia. "Soyoil trading is also down."

Global markets are seeing a shake-up on Friday as Britain voted to leave the European Union in a landmark referendum, pulling down stock markets and currencies across the region.

In competing vegetable oils, the Chicago Board of Trade soyoil contract for July fell 1.9%, while the September soybean oil contract on the Dalian Commodity Exchange declined 1.6%.

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

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

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Malaysian palm oil futures steadied in late trade on Thursday, recovering earlier losses as some traders bought palm before a possible spike in the ringgit, if Britain votes to stay in the European Union.

The ringgit and other emerging market currencies have been hit by recent volatility in global financial markets on nervousness about the economic impact if Britain votes to leave the EU in a referendum on Thursday.

Final opinion polls were mostly too close to call, however, some gave a vote to stay in the bloc a slight edge.

"Traders usually square their positions, ahead of a major announcement," one trader said, adding that the market was expecting Britain to stay in the EU.

A rising ringgit, the currency of trade for palm oil, makes the vegetable oil more expensive for foreign currency holders.

Palm fell earlier in the day on expectations for rising production and lower exports this month.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange rose 0.4% to 2,384 ringgit (US$594) per tonne at the close of trade, after
earlier hitting a six-month low of 2,351 ringgit.  

Traded volumes stood at 68,271 lots of 25 tonnes each in late trade, higher than the 2015 daily average of 44,600 lots.

"The continuous fall has resulted in most technicals being terribly oversold," said a Kuala Lumpur-based trader.

"The uncertainty over global events post Britain's vote also played a pivotal role in the prices ending higher."

Palm declined for nine consecutive sessions before paring losses on Friday. It fell for another two sessions this week on poor fundamentals.

Palm industry participants forecast higher June output versus a month ago, as fresh fruit yields increase in line with the growing season. Production typically reaches its peak in the third to fourth quarter of the year.

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

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

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Malaysian palm oil futures hit a more than five-month low on Tuesday, their 11th fall in 12 sessions, as a stronger ringgit and bearish fundamentals pulled down markets, and as traders forecast output would rise in the coming months.

The ringgit, the currency palm is traded in, gained 0.7% to 4.0320 against the dollar in late trade on Tuesday, making palm oil more expensive for foreign currency holders.

Benchmark palm oil futures for September delivery  on the Bursa Malaysia Derivatives Exchange dropped 1.1% to RM2,374 (US$588) per tonne at the close of trade on Tuesday.

It earlier hit RM2,370, the lowest since Jan. 13.

Palm saw its sharpest weekly decline in 8 months last week, and has lost 9.4% so far this month, on track for its worst month since Aug. 2014.

Traded volumes stood at 46,135 lots of 25 tonnes each in the evening.

"We're seeing a continued downward trend on a strong ringgit, poor exports and rising production," said a trader from Kuala Lumpur.

Exports decline after the festival period, and demand is seen cooling until the Hindu festival season of Diwali in October.

Output in Malaysia  is forecast to climb towards the end of the year, contributing to higher inventory levels and weighing on prices.  

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

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How to trade Crude Palm Oil Futures ( FCPO ) 20 JUNE 2016

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Malaysian palm oil futures fell on Monday after the government said it was in talks with oil and automotive companies to delay the start of its B10 biodiesel mandate to July.

The ministry of plantation industries and commodities said in response to a Reuters' question that the mandate would start a month later than initially planned and would aim to complete full implementation of its new standard by August.

Malaysia's so-called B10 programme aims to raise the minimum bio-content of biodiesel to 10% for the transport sector, mopping up more palm oil for blending purposes and increasing domestic demand.

The world's second largest palm oil producer after Indonesia has also said it would raise the bio-fuel content for the industrial sector to 7%

Palm prices had fallen in early trade after the Sun newspaper reported that the B10 programme would be suspended until further notice, a trader said.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange fell 2.1% to 2,400 ringgit (US$591) per tonne on Monday. It hit an intraday low of 2,397 ringgit, its weakest level in over five months.

Palm oil futures rose on Friday after nine consecutive days of losses.

Traded volumes stood at 47,297 lots of 25 tonnes each at the close of trade on Monday, versus the 2015 daily average of 44,600 lots.

A stronger ringgit also impacted futures prices.

A rising ringgit against the dollar makes palm more expensive for holders of foreign currencies, as the vegetable oil is traded in ringgit.

The ringgit rose 0.9% to hit 4.0620 per dollar around on Monday evening. It earlier hit 4.0640 per dollar, its strongest levels since June 10, as the weekend by-election wins by Malaysia's ruling party boosted ringgit sentiment.

Weak export data also did little to support markets.

Cargo surveyor data on Monday showed that exports of palm oil from June 1-20 fell 8%-10% from the same time period a month ago, as demand from mainly Muslim markets weakened leading up to the Eid festival.  

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 20 JUN 2016

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

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Malaysian palm oil futures edged higher on Friday after a run of losses, supported by a weaker ringgit and short covering, although they still marked a second straight weekly loss.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange rose 1.4% to 2,449 ringgit (US$598) per tonne at the close of trade, a first day of gains after a nine-day slide. The contract earlier dipped to 2,411 ringgit, its lowest since Jan 21.

"Palm was oversold, we're seeing short covering towards the weekend on the back of a weaker ringgit," said a trader in Kuala Lumpur.

A weaker ringgit, palm oil's currency of trade, typically helps boost benchmark prices, as it makes palm cheaper for foreign currency holders. The ringgit has weakened nearly 2% since it hit 4.0230 per dollar last Thursday, its strongest in three weeks. It fell slightly on Friday to 4.0995.

A second trader said market sentiment was still poor, despite palm's rise, which was largely due to a technical rebound.

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

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

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Malaysian palm oil futures fell on Thursday evening, hitting a five-month low and recording a ninth straight day of losses, as traders sell because of concerns of export weakness.

A strengthening ringgit and falls in competing vegetable oils have also undermined the edible oil. A stronger ringgit, the currency of trade for palm, makes it more expensive for foreign currency holders.

It earlier rose against the dollar to an intraday high of 4.0800, before weakening slightly by 0.01% to reach 4.0990 in the evening.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange were down 1.8% at 2,415 ringgit per tonne in the evening. The market earlier fell to its lowest since Jan 21 at 2,412 ringgit.

Traded volume stood at 58,026 lots of 25 tonnes each in the evening, versus the 2015 daily average of 44,600 lots.

"There are fears about further demand in the months to come after Eid, and these are high production months," said a trader from Kuala Lumpur.

"Demand is a question mark, we don't know how good exports will be after Eid. The export tax is also a deterrent to a certain extent by making us more uncompetitive."

Malaysia announced on Wednesday that it would raise its crude palm oil export tax to 6% for the month of July, up from 5.5% this month.

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

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

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

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How to trade Crude Palm Oil Futures ( FCPO ) 14 JUNE 2016

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Malaysian palm oil futures fell on Tuesday, its seventh straight losing session, as bearish palm fundamentals and declining rival oils weighed on the market.

    Traders forecast a rise in seasonal output in the coming months, while exports were seen declining after it peaked in May to accommodate Ramadan demand.

    Palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange dropped 1.9 percent to 2,481 ringgit ($605) per tonne at the close of trade on Tuesday. 

    It earlier fell to 2,478 ringgit per tonne, the lowest since May 25.

    Traded volumes stood at 55,617 lots of 25 tonnes each at the end of trade. 

    "It's a combination of declining exports, an increase in output and weakness in soy, seen in Dalian and all commodities markets in general," said a trader based in Kuala Lumpur.

    "It's almost at an oversold situation currently, we anticipate short covering to emerge at current levels."

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 14 JUN 2016

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

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 Malaysian palm oil futures fell for a sixth straight session on Monday, dropping early as traders foresaw rising output amid slowing demand and again in the evening tracking rival oil prices.

Palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange fell 2.1% to 2,525 ringgit (US$618) per tonne at the closing trade.

Traded volumes stood at 50,003 lots of 25 tonnes each, higher than the 2015 daily average of 44,600 lots.

The contract hit an intraday low of 2,524 ringgit, its weakest since May 25, after falling 3.2% last week, which was the sharpest weekly loss since the end of April.

"In general, traders feel production is getting higher and exports may not be able to catch up," said a trader based in East Malaysia. "I think the market is bottoming out and will soon go up again when stocks are low."

The market declined sharply in the evening, tracking rival oils, said another trader.

"China's Dalian Commodity Exchange posted sharper losses and soy slipped into negative territory," the trader said, referring to soyoil futures on the Chicago Board of Trade.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 13 JUN 2016

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

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Malaysian palm oil futures fell for a fifth straight session on Friday, marking a full week of losses, as lower export data weighed on market sentiment despite a weaker ringgit and falling stockpiles. 

    Weakness in the ringgit, the currency palm oil is traded in, typically supports prices since it makes the vegetable oil cheaper for holders of foreign currencies. The currency fell 0.5 percent on Friday against the dollar to 4.0640. 

    The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.3 percent at 2,580 ringgit ($635) per tonne on Friday evening, down 3.2 percent for the week. 

    Traded volumes stood at 43,321 lots of 25 tonnes each in the evening, versus a 2015 average of 44,600 lots traded daily.

"The market fell as export numbers were not too supportive," said a trader based in Kuala Lumpur, referring to shipment data from cargo surveyors. 

    Intertek Testing Services reported a 5.9 percent drop in exports of Malaysian palm oil for the first 10 days of June from the corresponding period in May, while Societe Generale de Surveillance showed a 10.3 percent fall.  

    Palm was earlier up on bullish expectations for May end-stocks data from industry regulator the Malaysian Palm Oil Board (MPOB). Inventories at the end of May fell 8.8 percent to

1.65 million tonnes from 1.80 million tonnes at the end of April, while exports rose 9.3 percent on Ramadan demand, the MPOB said after the close of morning trading. 

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

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

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Malaysian palm oil futures eased on Thursday after making gains in early trade, recording a fourth consecutive session of declines tracking a stronger ringgit.

The ringgit, the currency of trade for palm oil, gained 0.4 percent to 4.0450 per dollar in the evening. Earlier it rose to its highest against the dollar since May 18 at 4.0230, making palm oil more expensive for foreign currency holders.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 0.1 percent to reach 2,587 ringgit ($640) per tonne at the close of trade.

Traded volumes stood at 43,807 lots of 25 tonnes each, below a 2015 average of 44,600.

Palm's fourth straight session of declines has it on track to fall nearly 3 percent so far this week.

"The market is tracking the ringgit, hence the decline," said a trader from Kuala Lumpur.

Another trader had earlier said the stronger ringgit was seen capping gains, though the market is expecting bullish government data from the Malaysian Palm Oil Board.

Official statistics for the month of May from the MPOB will be released on Friday around noon. A Reuters survey of nine traders, analysts and planters forecast inventories to drop 8.8 percent to 1.64 million tonnes from April.

A stronger rise in exports, up 13.1 percent on April due to Ramadan demand, is seen outpacing smaller output growth of 3.9 percent, according to the poll.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 09 JUN 2016

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

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Malaysian palm oil futures declined further on Wednesday, hitting a near two-week low, as the ringgit remained at its strongest level for nearly three weeks.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.4% at 2,589 ringgit (US$637) per tonne at the end of the trading day.

The market fell for a third consecutive session, bringing its loss to 2.5% so far this week. It earlier reached an intraday low of 2,575 ringgit, its lowest since May 27. Traded volumes stood at 55,418 lots of 25 tonnes each on Wednesday evening, versus the 2015 average of 44,600.

"Palm is coming down on the back of a strengthening ringgit, so the market is on a profit-taking note," said a trader from Kuala Lumpur.

"It is a continuation of yesterday's sell off, today and tomorrow will see consolidation activity, as it awaits Malaysian Palm Oil Board (MPOB) figures."

Government body MPOB is scheduled to release May palm oil data on June 10 around noon. A Reuters poll ahead of the data pegged May end-stocks to fall 8.8% to 1.64 million tonnes from April, as the surge in exports outpaced a small rise in output growth.

Output is forecast to rise month-on-month by 3.9% to 1.35 million tonnes, compared with a 13.1% surge in exports due to Ramadan demand.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 08 JUN 2016

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How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 07 JUN 2016

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

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Malaysian palm oil futures fell for a second consecutive session to a one-week low on Tuesday, under pressure from a stronger ringgit which triggered technical selling.

The ringgit strengthened against the dollar on Tuesday, rising 1% to 4.0550 in the evening. It was at its highest level since May 18 and matched those seen on May 19 at 4.0540, making palm oil more expensive for holders of foreign currencies.

That followed a 1.2% jump in the ringgit on Monday evening after bearish US jobs data lowered market expectations of a June interest rate hike.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange dropped 2.3% to RM2,599 (US$641) per tonne in the evening.

It declined to an intraday low of RM2,597, its weakest levels since June 1. Traded volume stood at 70,723 lots of 25 tonnes each on Tuesday evening, higher than the 2015 average of 44,600.

"The market fell on the ringgit mainly, and when it falls below the previous day's low it triggers some technical selling," said a trader from Kuala Lumpur.

However, Palm oil has gained 1.5% since the start of the month, helped by stronger exports leading up to the start of Ramadan and in anticipation of the subsequent Eid al-Fitr celebrations which will mark the end of the fasting month. Supply growth for May is also seen slowing from a month ago, as palm yields take a hit from last year's crop damaging El Nino.

A Reuters poll has forecast an 8.8% fall in stockpiles to 1.64 million tonnes. Official data from the Malaysian Palm Oil Board (MPOB) is scheduled for release on June 10.

How to trade FTSE Bursa Malaysia KLCI Futures ( FKLI ) 06 JUN 2016

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How to trade Crude Palm Oil Futures ( FCPO ) 6 JUNE 2016

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Malaysian palm oil futures retreated from two sessions of gains to trade lower on Monday as the ringgit strengthened to its strongest level in more than a week and as expectations of lower post-Ramadan demand hit sentiment.

A stronger ringgit weighed down on palm, with the Malaysian currency hitting 4.0800 per dollar on Monday, its strongest level since May 27 after downbeat US jobs data lowered expectations of a rate hike in June.

The ringgit gained 1.2% against the dollar to reach 4.0950 in the evening, making palm oil more expensive for foreign currency holders.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.3% at RM2,659 (US$649) per tonne on Monday at the close of trade.

Traded volume stood at 44,927 lots of 25 tonnes each in the evening, compared with the 2015 average of 44,600.

"The stronger ringgit is the primary concern today," said a trader from Kuala Lumpur, adding palm was expected to trade range-bound in the coming days.

"I see a slowdown in June demand, it won't be as strong as before and output is also on the rising trend."

Palm oil production rises seasonally in the second and third quarters of the year, adding to stockpiles and capping gains on palm prices.

Post-Ramadan demand is also seen slowing in June, pulling down palm prices.

Palm oil demand usually rises a month before Ramadan and tapers off afterward. The holy month-long festival which began on Monday sees Muslims breaking their fast with communal feasting, incurring a higher demand of palm oil for cooking purposes.

May exports are seen rising 13% from a month ago, according to a Reuters poll, while output is forecast to rise 3.9%. End-stocks in Malaysia, the world's second largest palm producer, are expected to fall 8.8% to 1.64 million tonnes.  

How to trade Crude Palm Oil Futures ( FCPO ) 3 JUNE 2016.bmp

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(June 3): Malaysian palm oil futures rebounded from losses made in early trade, rising to a three and a half week high on Friday evening as better performing rival oils lent support to palm prices, despite a stronger ringgit.

A stronger ringgit usually makes palm oil more expensive for holders of foreign currencies, weighing on palm oil prices. The ringgit rose 0.1% against the dollar on Friday evening, rebounding from a three-month low reached in a previous session to reach 4.1440.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 0.9% to reach 2,666 ringgit (US$643) per tonne at the close of trade. It earlier reached an intraday and three and a half week high of RM2,674, matching the strongest levels on May 12.

Traded volumes stood at 46,578 lots of 25 tonnes each in the evening, compared with the 2015 average of 44,600.

Palm also recorded a weekly rise of 4.1%, a second consecutive week of gains after two earlier weeks of losses.

"Palm rose on overseas strength, which triggered technical buying when the market failed to ease lower in the afternoon session," said a Kuala Lumpur-based trader, referring to other vegetable oils that impact palm's performance.

"The Dalian's afternoon performance gave palm the boost," commented another trader on the Dalian Commodity Exchange.

The Chicago Board of Trade soyoil contract for July gained 0.9%, while the September soybean oil contract on the Dalian Commodity Exchange rose 2.6%.

The most actively traded September contract for palm olein on the Dalian Commodity exchange gained 1.9% on Friday evening.