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Tuesday, December 27, 2016

How to trade Crude Palm Oil Futures ( FCPO ) 27122016

#palmoil
#fcpo

Palm oil for March delivery rises as much as 2.3% to 3,129 ringgit/ton on Bursa Malaysia Derivatives, highest for most-active contract since Dec. 21.
  • Futures +2.1% to 3,123 ringgit/ton by midday break in Kuala Lumpur; +26% YTD
  • Production in Malaysia this month likely lower than expected as trees taking longer-than-predicted to recover from drought, says Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental
    • Inventory is expected to be tight: Thiagarajan
  • Soybean oil for March delivery on Chicago Board of Trade +0.7% to 35.13c/lb; March soybeans +0.5% to $10.02 1/2/bu
  • Malaysia’s Dec. 1-25 palm oil exports -5.6% m/m: Intertek
    • Compares with -14% m/m in Dec. 1-20 period
  • “The latest export data shows there has been some buying, which is supporting palm oil,” Thiagarajan says
  • Soybean oil’s premium over palm oil at ~$77/ton vs avg ~$93 over past year: data compiled by Bloomberg
  • Palm oil’s premium over gasoil at ~$205/ton vs avg ~$232 over past year: data compiled by Bloomberg
  • May refined palm oil on Dalian Commodity Exchange +1.7% to 6,220 yuan/ton; May soybean oil +1.5% to 6,970 yuan/ton

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