MARKET DEVELOPMENT
VEGOILS-Palm Hits 2-Mth High on Hopes Stocks Will Ease
VEGOILS-Palm Hits 2-Mth High on Hopes Stocks Will Ease
08/06/2013 (Reuters) - Malaysian palm oil futures climbed to their highest in more than two months on Friday, posting a fifth straight weekly gain, as investors placed further bets that stocks of the edible oil in the world's No.2 producer would ease in May.
Inventory levels most likely fell from April's 1.93 million tonnes to 1.78 million tonnes in May, the lowest in almost a year, as export demand and local consumption outstripped production, a Reuters survey showed.
Industry regulator the Malaysian Palm Oil Board (MPOB) will release official stocks data on Monday, while cargo surveyors' exports data for June 1-10 due on the same day may also show an improvement compared to a month ago.
"We are seeing more position taking ahead of the MPOB data. On top of that, we are also seeing more orders coming in from India for Ramadan," said a trader with a local commodities brokerage in Kuala Lumpur, referring to the Muslim holy month starting in July that typically sees a rise in consumption.
At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange was up 0.9 percent at 2,457 ($795) ringgit per tonne, below its intraday high at 2,471 ringgit, its loftiest since March 27.
Total traded volumes stood at 42,434 lots of 25 tonnes each, higher than the average 35,000 lots.
Technicals showed palm oil is expected to peak around 2,457 ringgit per tonne, as indicated by its wave pattern, Reuters market analyst Wang Tao said.
For the week, palm oil gained 2.5 percent on hopes of lower stocks and higher restocking demand from India and Pakistan.
In other markets, Brent futures rose above $104 a barrel, supported by a sharp fall in the dollar and expectations of ongoing U.S. economic stimulus, putting the contract on course for its biggest weekly gain since late April.
In vegetable oil markets, U.S. soyoil for July climbed 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange gained 1.3 percent.
Palm, soy and crude oil prices at 1002 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2425 +36.00 2398 2425 112
MY PALM OIL JUL3 2454 +30.00 2424 2466 2511
MY PALM OIL AUG3 2457 +22.00 2436 2471 20486
CHINA PALM OLEIN SEP3 6358 +214.00 6152 6382 1177478
CHINA SOYOIL SEP3 7496 +94.00 7356 7508 788414
CBOT SOY OIL JUL3 48.47 +0.31 47.95 48.50 7582
NYMEX CRUDE JUL3 95.14 +0.38 94.62 95.18 14155
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=3.092 ringgit)
Inventory levels most likely fell from April's 1.93 million tonnes to 1.78 million tonnes in May, the lowest in almost a year, as export demand and local consumption outstripped production, a Reuters survey showed.
Industry regulator the Malaysian Palm Oil Board (MPOB) will release official stocks data on Monday, while cargo surveyors' exports data for June 1-10 due on the same day may also show an improvement compared to a month ago.
"We are seeing more position taking ahead of the MPOB data. On top of that, we are also seeing more orders coming in from India for Ramadan," said a trader with a local commodities brokerage in Kuala Lumpur, referring to the Muslim holy month starting in July that typically sees a rise in consumption.
At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange was up 0.9 percent at 2,457 ($795) ringgit per tonne, below its intraday high at 2,471 ringgit, its loftiest since March 27.
Total traded volumes stood at 42,434 lots of 25 tonnes each, higher than the average 35,000 lots.
Technicals showed palm oil is expected to peak around 2,457 ringgit per tonne, as indicated by its wave pattern, Reuters market analyst Wang Tao said.
For the week, palm oil gained 2.5 percent on hopes of lower stocks and higher restocking demand from India and Pakistan.
In other markets, Brent futures rose above $104 a barrel, supported by a sharp fall in the dollar and expectations of ongoing U.S. economic stimulus, putting the contract on course for its biggest weekly gain since late April.
In vegetable oil markets, U.S. soyoil for July climbed 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange gained 1.3 percent.
Palm, soy and crude oil prices at 1002 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2425 +36.00 2398 2425 112
MY PALM OIL JUL3 2454 +30.00 2424 2466 2511
MY PALM OIL AUG3 2457 +22.00 2436 2471 20486
CHINA PALM OLEIN SEP3 6358 +214.00 6152 6382 1177478
CHINA SOYOIL SEP3 7496 +94.00 7356 7508 788414
CBOT SOY OIL JUL3 48.47 +0.31 47.95 48.50 7582
NYMEX CRUDE JUL3 95.14 +0.38 94.62 95.18 14155
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=3.092 ringgit)