MARKET DEVELOPMENT
VEGOILS-Palm Oil Hits 1-1/2-Month High on Hopes of Easing Stocks
VEGOILS-Palm Oil Hits 1-1/2-Month High on Hopes of Easing Stocks
29/05/2013 (Reuters) - Malaysian palm oil futures hit 1-1/2-month highs on Tuesday as optimism grew that a demand recovery and stagnant output would pare stocks of the edible oil.
Palm oil exports from the country during May 1-25 fell 2.6 percent from a month ago but that was an improvement from the 6.6 percent decline in the first 20 days, said cargo surveyor Societe Generale de Surveillance on Monday.
Another surveyor, Intertek Testing Services, reported a 5.2 percent fall in the first 25 days, also recovering from an earlier 9.4 percent decline.
Purchases of palm oil may rise further as buyers stock up ahead of the Muslim fasting month of Ramadan, which starts in July this year, when communal feasting usually boosts consumption.
"Traders are talking about Ramadan demand and slowing production ... these factors are giving strength to the market. We will have to see how long this rally will hold," said a trader with a local commodities brokerage in Kuala Lumpur.
The benchmark August contract on the Bursa Malaysia Derivatives Exchange inched up 0.3 percent to close at 2,388 ($7864) ringgit per tonne, after earlier rising as high as 2,401 ringgit, a level last seen on April 10.
Total traded volumes were thin, at 18,233 lots of 25 tonnes each, compared to the average 35,000 lots.
Technicals showed palm oil faces resistance at 2,388 ringgit per tonne, and may seek support at 2,362 ringgit before rising again, said Reuters market analyst Wang Tao.
Recovering demand, coupled with stagnant output, may ease stocks further in the world's second-largest palm oil producer, whose inventory level slid to a 10-month low of 1.93 million tonnes in end-April.
In vegetable oil markets, U.S. soyoil for July delivery gained 0.7 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.1 percent.
Palm, soy and crude oil prices at 1000 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2375 +10.00 2310 2375 455
MY PALM OIL JUL3 2391 +5.00 2377 2403 2661
MY PALM OIL AUG3 2388 +7.00 2372 2401 11302
CHINA PALM OLEIN SEP3 6164 +52.00 6130 6196 538896
CHINA SOYOIL SEP3 7498 -4.00 7466 7552 701996
CBOT SOY OIL JUL3 49.59 +0.35 49.25 49.64 4372
NYMEX CRUDE JUL3 94.66 +0.51 93.23 94.76 37767
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
Crude in U.S. dollars per barrel
($1=3.04 ringgit)
Palm oil exports from the country during May 1-25 fell 2.6 percent from a month ago but that was an improvement from the 6.6 percent decline in the first 20 days, said cargo surveyor Societe Generale de Surveillance on Monday.
Another surveyor, Intertek Testing Services, reported a 5.2 percent fall in the first 25 days, also recovering from an earlier 9.4 percent decline.
Purchases of palm oil may rise further as buyers stock up ahead of the Muslim fasting month of Ramadan, which starts in July this year, when communal feasting usually boosts consumption.
"Traders are talking about Ramadan demand and slowing production ... these factors are giving strength to the market. We will have to see how long this rally will hold," said a trader with a local commodities brokerage in Kuala Lumpur.
The benchmark August contract on the Bursa Malaysia Derivatives Exchange inched up 0.3 percent to close at 2,388 ($7864) ringgit per tonne, after earlier rising as high as 2,401 ringgit, a level last seen on April 10.
Total traded volumes were thin, at 18,233 lots of 25 tonnes each, compared to the average 35,000 lots.
Technicals showed palm oil faces resistance at 2,388 ringgit per tonne, and may seek support at 2,362 ringgit before rising again, said Reuters market analyst Wang Tao.
Recovering demand, coupled with stagnant output, may ease stocks further in the world's second-largest palm oil producer, whose inventory level slid to a 10-month low of 1.93 million tonnes in end-April.
In vegetable oil markets, U.S. soyoil for July delivery gained 0.7 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.1 percent.
Palm, soy and crude oil prices at 1000 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2375 +10.00 2310 2375 455
MY PALM OIL JUL3 2391 +5.00 2377 2403 2661
MY PALM OIL AUG3 2388 +7.00 2372 2401 11302
CHINA PALM OLEIN SEP3 6164 +52.00 6130 6196 538896
CHINA SOYOIL SEP3 7498 -4.00 7466 7552 701996
CBOT SOY OIL JUL3 49.59 +0.35 49.25 49.64 4372
NYMEX CRUDE JUL3 94.66 +0.51 93.23 94.76 37767
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
Crude in U.S. dollars per barrel
($1=3.04 ringgit)