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

#HowtotradeFCPO

(Jan 20): Malaysian palm oil futures slid nearly 1% on Wednesday, falling further from a three-week high reached at the start of the week, after data
showed a drop in exports this month.

Palm oil prices have come under pressure in the absence of an expected pick up in imports by key consumer China, ahead of Lunar New Year celebrations in February. A slowdown in growth in the world's No.2 economy and ample world supplies of rival soyoil have curbed the country's demand for the tropical oil.

The palm oil contract for April on the Bursa Malaysia Derivatives Exchange fell 0.9% to close at 2,455 ringgit (US$559.10) per tonne, below Monday's near three-week top of 2,495 ringgit. Traded volume stood at 39,984 lots of 25 tonnes each.

"The market fall has quite a lot to do with the export data," said a Kuala Lumpur-based trader.

Data from cargo surveyor Intertek Testing Services (ITS) shows an 8.5% month-on-month drop in Malaysian palm oil exports over Jan 1-20, while Societe Generale de Surveillance reported a 10.5% drop in shipments.

"These are very low numbers, which I was not expecting. I thought exports would at least maintain, because we are still dealing with zero percent duty on crude palm oil," the trader added.

Malaysia, the world's second-largest palm producer after Indonesia, has kept its crude palm oil export tax at zero for the past nine months.

Palm oil may slide more to a support at 2,430 ringgit per tonne, as suggested by its wave pattern and a Fibonacci projection analysis, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

In related markets, U.S. crude futures hit their lowest since September 2003, below US$28 a barrel, on worries over global oversupply.

The U.S. March soyoil contract was down 0.8%, while the May soybean oil contract on the Dalian Commodity Exchange fell 0.4%.
 
  Palm, soy and crude oil prices at 1012 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	FEB6	2359	-13.00	2344	2368	1454
MY PALM OIL	MAR6	2415	-17.00	2405	2428	5236
MY PALM OIL	APR6	2455	-23.00	2444	2472	21536
CHINA PALM OLEIN	MAY6	4632	-66.00	4630	4740	1108754
CHINA SOYOIL	MAY6	5568	-22.00	5550	5646	634436
CBOT SOY OIL	MAR6	29.79	-1.50	29.71	29.99	4164
INDIA PALM OIL	JAN6	426.50	-1.50	425.00	427.20	296
INDIA SOYOIL	JAN6	612.85	-0.65	612.80	613.40	630
NYMEX CRUDE	FEB6	27.55	-0.91	27.32	28.58	2537

  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

(US$1 = 4.3910 ringgit)
(US$1 = 67.9700 Indian rupees)
(US$1 = 6.5796 Chinese yuan)