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Tuesday, February 21, 2017

How to trade Crude Palm Oil Futures ( FCPO ) 21022017

PALM OIL: Futures Gain Most in a Week as Output, Demand Weighed

(Bloomberg) -- Palm oil for May delivery rises as much as 1% to 2,860 ringgit/ton on Bursa Malaysia Derivatives, biggest intraday gain since Feb. 10.
  • Trades +0.2% at 2,837 ringgit by 12:04pm in Kuala Lumpur; earlier -0.3%
  • The market is testing the psychological support level at 2,800 ringgit and there some short covering at these levels, Donny Khor, deputy director of futures & commodities at RHB Investment Bank in Kuala Lumpur, says by phone. Expectations of tight supplies in Feb. will continue to underpin market in near term, he says
    • Uncertainty about demand from consuming countries, anticipation for palm oil production to recover from March onward is capping price gains: Khor
  • NOTE: Malaysia 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
  • NOTE: Palm Oil Output Seen Recovering as El Nino Effect Recedes: MPOC
  • Soybean oil for May delivery on Chicago Board of Trade unchanged at 33.16c/lb; May soybeans +0.6% to $10.49 3/4 a bushel
  • Soybean oils premium over palm oil at ~$95/ton vs avg ~$91 over past year: data compiled by Bloomberg
  • Palm oil premium over gasoil at ~$141/ton vs avg ~$219 over past year: data compiled by Bloomberg
  • May refined palm oil on Dalian Commodity Exchange -1.2% to 5,860 yuan/ton; May soybean oil -0.9% to 6,638 yuan/ton

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