Tuesday, August 2, 2016

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

#FCPO
#palmoil

Malaysian palm oil futures reversed earlier losses to rise in late trade on Tuesday, charting a third consecutive winning session, tracking stronger U.S. soyoil and Chinese refined, bleached and deodorized (RBD) palm olein.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange gained 0.5% to reach 2,338 ringgit (US$580.40) per tonne at the close of trade.
Palm prices fluctuated early in the session, trading higher before falling to an intraday low of 2,303 ringgit.
Traded volumes stood at 39,102 lots of 25 tonnes each on Tuesday evening, lower than the 2015 average of 44,600.
"The market is supported by Chicago Board of Trade soyoil and Dalian's RBD palm olein," said a trader from Kuala Lumpur.
Palm oil often takes direction from related oil palm olein, and its rival oil soy as they both compete for a share in the global vegetable oil market.
Another trader had earlier said that palm was trading within a range, while waiting for new leads. While cargo surveyor data showed improving export demand for the month of July, a 12%-15% improvement from June, output is seen rising in line with seasonal trend.
Palm has been trading around eight-month low in the last three weeks, dragged down by weaker performing soy on Dalian and the Chicago Board of Trade. It declined 1.6% for a second monthly fall in July.
In related-vegetable oils, the Chicago soybean oil contract for December rose 0.9%, while Dalian's January soybean oil contract declined 0.1%.  

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