Thursday, February 23, 2017

How to trade Crude Palm Oil Futures ( FCPO ) 23022017

PALM OIL: Futures Rebound From 3-Month Low as Demand Assessed

(Bloomberg) -- Palm oil for May delivery closes +1% at 2,811 ringgit/ton on Bursa Malaysia Derivatives, biggest gain since Feb. 2 that snaps 4-day losing streak.
  • Palm closed -1.7% at 2,783 ringgit on Tuesday, lowest since Nov. 4
  • Futures lifted by short-covering activities after prices dropped in previous session, according to Rajesh Modi, trader at Sprint Exim in Singapore
  • “The market is waiting for demand, while production is expected to increase from March,” Modi says
    • Prices seen between 2,700-2,900 ringgit until early March
  • NOTE: Malaysia’s Feb. 1-20 palm oil exports -0.8% m/m to 733,288 tons: Intertek; shipments +1.7% m/m to 745,564 tons, according to SGS
  • Soybean oil for May delivery on Chicago Board of Trade +0.9% to 33.24c/lb; May soybeans +0.2% to $10.39 a bushel
  • Soybean oil’s premium over palm oil at ~$102/ton vs avg ~$91 over past year: data compiled by Bloomberg
  • Palm oil’s premium over gasoil at ~$138/ton vs avg ~$218 over past year: data compiled by Bloomberg
  • May refined palm oil on Dalian Commodity Exchange closes -0.3% at 5,878 yuan/ton; May soybean oil -0.2% to 6,654 yuan/ton

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