Malaysian palm oil price up after two days of losses as traders hedge on spot prices

CIMB Equities Research said IOI Corporation Bhd 1QFY6/16 core net profit (excluding forex translation loss) accounted for 14% of its full-year forecast and 12% of consensus estimates

KUALA LUMPUR: Malaysian palm oil futures reversed two days of declines to gain on Wednesday as traders were keen to lock in hedges for physical crude palm oil (CPO) at these levels.
    The palm oil contract for March on the Bursa Malaysia Derivatives Exchange fell to a near one-month low of 2,368 before ending the trading day 1.3 percent higher at 2,413 ringgit ($551.54) per tonne.
    "CPO is well held at current prices," said a trader from Kuala Lumpur, explaining that traders are hedging on that.
    "It's going to be difficult for it (spot CPO prices) to come down, it's hanging around the 2,250 ringgit level."
    Traded volume stood at 43,908 lots of 25 tonnes each.
    Palm has fallen by nearly 3 percent so far since the start of the year as export demand for the tropical oil remains lacklustre and traders remain cautious over shaky equity markets
and plunging crude oil prices.
    The U.S. March soyoil contract gained 0.79 percent, while the May soybean oil contract on the Dalian Commodity Exchange was slightly down by 0.1 percent.
    
  Palm, soy and crude oil prices at 1004 GMT
                                                                      
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JAN6    2227    +3.00    2227    2229      11
  MY PALM OIL      FEB6    2341   +35.00    2294    2341    1403
  MY PALM OIL      MAR6    2413   +31.00    2368    2413   25048
  CHINA PALM OLEIN MAY6    4630   -32.00    4626    4674 1116442
  CHINA SOYOIL     MAY6    5542    -8.00    5530    5574  506316
  CBOT SOY OIL     MAR6   29.40    +0.90   29.13   29.42    4244
  INDIA PALM OIL   JAN6  417.80    +0.90  415.30  418.10     519
  INDIA SOYOIL     JAN6  602.10    +4.85  596.40  602.20    5000
  NYMEX CRUDE      FEB6   31.20    +0.76   30.50   31.41   62399
                                                                      
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. 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 U.S. dollars per barrel
 
($1 = 4.3750 ringgit)
($1 = 66.8275 Indian rupees)
($1 = 6.5742 Chinese yuan) 
- Reuters