Friday, July 29, 2016

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

#FCPO
#palmoil
Malaysian palm oil futures rose on Friday evening as traders forecast better exports for July, but still charted its first weekly decline in three weeks given weakness in competing soybean oil markets.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.7% to RM2,316 (US$569) per tonne at the end of the trading day.
Traded volumes stood at 35,343 lots of 25 tonnes each by Friday evening, lower than the 2015 average of 44,600.
However, palm lost 0.2% this week. It is also down 1.6% for the month, weighed down by poorer performing related oils on China's Dalian Commodity Exchange during July.
The market is likely to be expecting higher exports, thus supporting palm prices, said a trader from Kuala Lumpur, referring to export data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance.
Exports of palm oil products from Malaysia, the world's second largest producer after Indonesia, rose about 15% during the July 1-25 period from a month earlier boosted by stronger demand from China and Europe, according to the cargo surveyors.  
Data for the full month of July will be released on Monday.
Palm oil may break a resistance at RM2,343 per tonne and rise more into a range of RM2,364-2,374, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
In competing vegetable oils, the Chicago soybean oil contract for December dropped 0.3%, while Dalian's January soybean oil contract declined 0.8%.

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