ZLBT Chats

Friday, November 19, 2010


Beijing Clarifies Food Oil Curbs Policy

Volatile CPO Rebound On Relief Rally
Crude palm oil futures on Bursa Malaysia Derivatives rebounded Thursday, erasing sharp early losses as concerns eased about China’s intention to curb rising food prices.

Most agricultural commodities fell sharply Wednesday following reports that China may place tighter controls on food prices and take measures to slow demand growth.

The benchmark February palm oil contract ended MYR53 higher at MYR3,318 a metric ton, after stumbling 4.6% in early trade to MYR3,114/ton, its lowest level in two weeks. December 2010 gained RM64 to RM3,335 per tonne, January 2011 advanced RM63 to RM3,333 per tonne and March 2011 increased RM51 to RM3,306 per tonne.

China is the world's largest consumer of edible oils, and changes in its import requirements for palm oil and soyoil influence global prices.

However, trading executives said Beijing's policy changes won't significantly affect the country's appetite for edible oils.

Selling pressure eased during the afternoon session because market participants were encouraged by a rebound in soyoil and corn futures during Asian hours, and by weak production growth in November due to continuing monsoon rains.

Soyoil's rise above 50 cents a pound helped to push palm oil prices above the psychological level of MYR3,300/ton, said a trading executive at Kuala Lumpur-based commodities brokerage.

Open interest on the BMD was 77,459 lots, versus 75,133 lots Tuesday. One lot is equivalent to 25 tons.
Overall, daily volume surged to a record high of 41,879 contracts, a level last seen in two years.
(Does the volume tells you something?)
Another 4K CPO is not impossible :P
CPO Rekomen
(Keep Stops Handy >>> Compulsory !!!)

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