MARKET DEVELOPMENT
Palm Oil Trades Near One-Week High as Inventories Seen Declining
Palm Oil Trades Near One-Week High as Inventories Seen Declining
09/05/2013 (Bloomberg) - Palm oil traded near the highest level in a week as optimism that stockpiles in Malaysia were set to decline was countered by speculation that India may reduce imports because of near record domestic cooking oil reserves.
The contract for July delivery ended the morning session at 2,290 ringgit a metric ton on the Bursa Malaysia Derivatives, erasing losses of as much as 0.8 percent. Futures reached 2,294 ringgit yesterday, the highest price since April 30.
Reserves in Malaysia, the world’s second-largest producer, probably fell 5.1 percent to 2.06 million tons in April, the least since July, a Bloomberg survey published this week showed. Shipments fell 6.5 percent to 1.44 million tons, according to the survey. Official data are due for release tomorrow.
“Market generally expects Malaysian inventories to decline, but there’s a possibility that it could just be flattish month-on-month because of weaker exports,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. “There could be some slowdown from Indian imports of palm oil in the coming one to two months if they are well stocked.”
India’s palm oil imports may have gained 9 percent to 560,000 tons in April, according to the median of estimates from five processors and brokers compiled by Bloomberg. Purchases of vegetable oils, including those for industrial use, probably fell for the first time in five months as reserves stayed near a record and summer heat curbed consumption of fried foods, the survey showed. The Solvent Extractors’ Association of India will release the data next week.
Soybeans for July delivery were little changed at $13.9175 a bushel on the Chicago Board of Trade. Soybean oil climbed 0.2 percent to 48.90 cents a pound.
Refined palm oil for September delivery dropped 0.5 percent to 5,958 yuan ($971) a ton on the Dalian Commodity Exchange. Soybean oil slid 0.4 percent to 7,378 yuan a ton.
The contract for July delivery ended the morning session at 2,290 ringgit a metric ton on the Bursa Malaysia Derivatives, erasing losses of as much as 0.8 percent. Futures reached 2,294 ringgit yesterday, the highest price since April 30.
Reserves in Malaysia, the world’s second-largest producer, probably fell 5.1 percent to 2.06 million tons in April, the least since July, a Bloomberg survey published this week showed. Shipments fell 6.5 percent to 1.44 million tons, according to the survey. Official data are due for release tomorrow.
“Market generally expects Malaysian inventories to decline, but there’s a possibility that it could just be flattish month-on-month because of weaker exports,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. “There could be some slowdown from Indian imports of palm oil in the coming one to two months if they are well stocked.”
India’s palm oil imports may have gained 9 percent to 560,000 tons in April, according to the median of estimates from five processors and brokers compiled by Bloomberg. Purchases of vegetable oils, including those for industrial use, probably fell for the first time in five months as reserves stayed near a record and summer heat curbed consumption of fried foods, the survey showed. The Solvent Extractors’ Association of India will release the data next week.
Soybeans for July delivery were little changed at $13.9175 a bushel on the Chicago Board of Trade. Soybean oil climbed 0.2 percent to 48.90 cents a pound.
Refined palm oil for September delivery dropped 0.5 percent to 5,958 yuan ($971) a ton on the Dalian Commodity Exchange. Soybean oil slid 0.4 percent to 7,378 yuan a ton.