How to trade Crude Palm Oil Futures ( FCPO ) 17 FEB 2016

#HowtotradeFCPO

(Feb 17): Malaysian palm oil futures recovered previous losses to gain on Wednesday as it rose nearly 1% on traders' forecasts that end-of-month stockpiles will draw down further during February.

The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.97% to close at RM2,613 (US$620.30) per tonne in the evening, the first increase after two sessions of losses.

Traded volume stood at 49,612 lots of 25 tonnes each.

"The market will hold," said a trader with a Kuala Lumpur-based brokerage.

"People are willing to buy at 2,500 with the belief that end-stocks will draw down on low production for the month of February," the trader explained.

Inventories of the tropical oil have declined since November because of a seasonal decline in production and because of dry weather from the El Nino weather phenomenon that typically brings scorching heat to Southeast Asia, lowering palm yields.

Malaysia's January end-stocks, or end-of-month inventories, fell 12.4% month-on-month to 2.31 million tonnes, its lowest in six months, as output took a hit from the dry weather impact.

Palm oil may retrace to RM2,549 per tonne as it approached a support at RM2,576 again, said Wang Tao, Reutersmarket analyst for commodities and energy technicals.

In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange fell 1%, while the Chicago soyoil contract gained 0.1%.

Palm, soy and crude oil prices at 1015 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	MAR6	2546	+20.00	2512	2546	1350
MY PALM OIL	APR6	2594	+20.00	2557	2598	5461
MY PALM OIL	MAY6	2613	+25.00	2572	2615	24143
CHINA PALM OLEIN	MAY6	4970	-26.00	4938	4986	701982
CHINA SOYOIL	MAY6	5754	-56.00	5748	5788	360270
CBOT SOY OIL	MAR6	31.63	+3.70	31.46	31.65	4846
INDIA PALM OIL	FEB6	485.60	+3.70	481.50	488.00	673
INDIA SOYOIL	FEB6	617.75	+0.60	617.30	618.50	390
NYMEX CRUDE	MAR6	29.65	+0.61	28.73	29.70	40499

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.2125)
(US$1 = 68.4600 Indian rupees)
(US$1 = 6.5259 Chinese yuan)