Tuesday, January 24, 2017

How to trade Crude Palm Oil Futures ( FCPO ) 24012017

#palmoil
#fcpo

PALM OIL: Futures Snap 4-Day Drop on Dalian Rally, Low Output
By Anuradha Raghu
(Bloomberg) -- Palm oil for April delivery gains as much as 1.7% to 3,150 ringgit/ton on Bursa Malaysia Derivatives, biggest intraday advance for most-active contract since Jan. 11.
  • Futures at 3,144 ringgit by 12pm in Kuala Lumpur
  • Palm oil tracking gains in Dalian, Chicago markets, says Josephine Goh, associate director of futures and commodities at RHB Investment Bank. Persistent low production in southern region of Peninsular Malaysia also supporting prices, she says
    • Immediate upside resistance seen at 3,170-3,175 ringgit; downside support seen at 3,080-3,075 ringgit: Goh
  • May refined palm oil on Dalian Commodity Exchange +2.1% to 6,384 yuan/ton, snapping 5-day decline; May soybean oil +1.4% to 7,066 yuan/ton
  • March soybeans on Chicago Board of Trade +0.9% to $10.66 3/4/bu; soybean oil for March delivery +0.9% to 35.45c/lb
  • Market uncertain how badly floods have affected plantation areas in Malaysia: Goh
    • NOTE: ~1,400 residents in state of Johor affected by flooding by Tuesday, according to state news agency Bernama
    • Johor is 3rd-biggest palm-growing state in Malaysia
  • Soybean oil’s premium over palm oil at ~$72/ton vs avg ~$92 over past year: data compiled by Bloomberg
  • Palm oil’s premium over gasoil at ~$216/ton vs avg ~$228 over past year: data compiled by Bloomberg

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