MARKET DEVELOPMENT
VEGOILS-Palm Eases To 7-Mth Low on Concerns Over Weak Exports, Higher Output
VEGOILS-Palm Eases To 7-Mth Low on Concerns Over Weak Exports, Higher Output
17/07/2013 (Reuters) - Malaysian palm oil futures fell to the lowest in more than seven months on Tuesday, as worries persisted over weak exports and higher output of the tropical oil.
Malaysian palm oil exports for the first half of the month fell as much as 24 percent from the same period a month ago, as buying slowed after the start of Ramadan.
Shipments had hit a three-month high in June on restocking ahead of the Muslim holy month.
An uptick in June production data from industry regulator the Malaysian Palm Oil Board also signalled the start of a higher yield cycle and raised concerns about inventory levels climbing higher this month.
"Weak exports and a rise in production are pointing to higher end-stocks this month, while weakness from U.S. and Dalian soybean oil also weighed on palm," said a trader with a foreign commodities brokerage in Kuala Lumpur.
At market close, the new benchmark October contract on the Bursa Malaysia Derivatives Exchange had lost 1.6 percent to 2,227 ringgit ($699) per tonne. That was just above the low for the day at 2,222 ringgit, the lowest since Dec. 13.
Total traded volume stood at 31,639 lots of 25 tonnes each, slightly lower than the average 35,000 lots. Prices moved in a range between 2,222 to 2,266 ringgit.
Market participants are keeping a close watch on global oilseed supplies after the U.S. Department of Agriculture earlier raised forecasts for the country's soybean output and stockpiles before the next harvest.
A higher supply of soybean to be crushed into soybean oil could further depress prices of competing palm oil, which has lost 8.7 percent in value so far this year.
In other markets, Brent oil rose towards $110 per barrel on Tuesday, reaching a three month high, supported by lower inventories, firm demand and concern that turmoil in Egypt could disrupt supply.
In vegetable oil markets, the U.S. soyoil contract for December was up 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.
Palm, soy and crude oil prices at 1004 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 2258 -27.00 2254 2284 604
MY PALM OIL SEP3 2242 -31.00 2240 2273 7143
MY PALM OIL OCT3 2227 -36.00 2222 2266 14517
CHINA PALM OLEIN JAN4 5636 -48.00 5610 5678 501280
CHINA SOYOIL JAN4 7206 +8.00 7160 7218 593744
CBOT SOY OIL DEC3 45.45 +0.17 45.21 45.65 4013
NYMEX CRUDE AUG3 106.58 +0.26 105.91 106.74 18363
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=3.187 ringgit)
Malaysian palm oil exports for the first half of the month fell as much as 24 percent from the same period a month ago, as buying slowed after the start of Ramadan.
Shipments had hit a three-month high in June on restocking ahead of the Muslim holy month.
An uptick in June production data from industry regulator the Malaysian Palm Oil Board also signalled the start of a higher yield cycle and raised concerns about inventory levels climbing higher this month.
"Weak exports and a rise in production are pointing to higher end-stocks this month, while weakness from U.S. and Dalian soybean oil also weighed on palm," said a trader with a foreign commodities brokerage in Kuala Lumpur.
At market close, the new benchmark October contract on the Bursa Malaysia Derivatives Exchange had lost 1.6 percent to 2,227 ringgit ($699) per tonne. That was just above the low for the day at 2,222 ringgit, the lowest since Dec. 13.
Total traded volume stood at 31,639 lots of 25 tonnes each, slightly lower than the average 35,000 lots. Prices moved in a range between 2,222 to 2,266 ringgit.
Market participants are keeping a close watch on global oilseed supplies after the U.S. Department of Agriculture earlier raised forecasts for the country's soybean output and stockpiles before the next harvest.
A higher supply of soybean to be crushed into soybean oil could further depress prices of competing palm oil, which has lost 8.7 percent in value so far this year.
In other markets, Brent oil rose towards $110 per barrel on Tuesday, reaching a three month high, supported by lower inventories, firm demand and concern that turmoil in Egypt could disrupt supply.
In vegetable oil markets, the U.S. soyoil contract for December was up 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.
Palm, soy and crude oil prices at 1004 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 2258 -27.00 2254 2284 604
MY PALM OIL SEP3 2242 -31.00 2240 2273 7143
MY PALM OIL OCT3 2227 -36.00 2222 2266 14517
CHINA PALM OLEIN JAN4 5636 -48.00 5610 5678 501280
CHINA SOYOIL JAN4 7206 +8.00 7160 7218 593744
CBOT SOY OIL DEC3 45.45 +0.17 45.21 45.65 4013
NYMEX CRUDE AUG3 106.58 +0.26 105.91 106.74 18363
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=3.187 ringgit)