CPO Tanked By Soyoil And Higher Crop Output

Crude palm oil futures on Malaysia’s derivatives exchange fell sharply Monday tracking soyoil and expectations of a rise in October crop output in Malaysia, said market participants.
The benchmark December contract on the Bursa Malaysia Derivatives closed MYR67 lower at MYR2,666 a metric ton, after hitting a high of MYR2,689/ton during the day.

The absence of strong buying interest, profit-taking by most traders and a lack of fresh fundamental data from Dalian due to holidays in China kept prices in the MYR2,650-MYR2,700/ton range.

"With Europe starting lower and the absence of buyers of laurics, any upside to CPO will be limited tomorrow," a technical analyst at a Kuala Lumpur-based commodities brokerage said.

Prices will likely hover around MYR2,700/ton, he added. Malaysia's crop output for 2010 is expected to be around initial official estimates of around 18 millions tons, slightly higher on year.

SOYBEAN OIL (DEC) 10/05/2010

December Soybean Oil finished down 0.38 at 43.45, 0.52 off the high and 0.03 up from the low.

Declining momentum studies in the neutral zone will tend to reinforce lower price action. The market's close below the 9-day moving average is an indication the short-term trend remains negative. It is a slightly negative indicator that the close was lower than the pivot swing number. The next downside target is 43.03. The next area of resistance is around 43.72 and 44.12, while 1st support hits today at 43.18 and below there at 43.03.

HAPPY TRADING