MARKET DEVELOPMENT
Palm Oil Swings Between Gains and Losses Before Data Release
Palm Oil Swings Between Gains and Losses Before Data Release
14/08/2013 (Bloomberg) - Palm swung between gains and losses as investors awaited release of data, which may show Malaysia boosted production as the country’s currency weakened, making the tropical oil cheaper for importers.
The contract for October delivery rose and fell at least 0.5 percent and traded at 2,295 ringgit ($702) a metric ton on the Bursa Malaysia Derivatives at 12:07 p.m. in Kuala Lumpur. Futures closed 2.5 percent higher yesterday, the biggest gain since Jan. 2. Palm oil for local physical delivery in August was at 2,340 ringgit yesterday, data compiled by Bloomberg show.
Output expanded 10 percent to 1.56 million tons in July from a month earlier, while exports gained 2.7 percent to 1.45 million tons, according to a Bloomberg survey. The Malaysian Palm Oil Board is scheduled to release the data at 12:30 p.m.
“The market is quite uncertain,” Chandran Sinnasamy, head of trading at LT International Futures Sdn., said by phone from Kuala Lumpur. “July end-stocks may be higher due to the unexpected rise in production.”
Reserves were 1.65 million tons, matching those in June, the least since March 2011, the survey published Aug. 6 showed.
Prices are supported by the weaker ringgit which has made palm cheaper for foreign buyers, said Chandran. The Malaysian currency declined against the dollar to a three-year low today.
Soybean oil for delivery in December fell 0.2 percent to 42.86 cents a pound on the Chicago Board of Trade. Soybeans for November lost 0.3 percent to $12.2375 a bushel.
Refined palm oil for January delivery declined 0.3 percent to 5,554 yuan ($908) a ton on the Dalian Commodity Exchange. Soybean oil retreated 0.5 percent to 7,112 yuan a ton.
The contract for October delivery rose and fell at least 0.5 percent and traded at 2,295 ringgit ($702) a metric ton on the Bursa Malaysia Derivatives at 12:07 p.m. in Kuala Lumpur. Futures closed 2.5 percent higher yesterday, the biggest gain since Jan. 2. Palm oil for local physical delivery in August was at 2,340 ringgit yesterday, data compiled by Bloomberg show.
Output expanded 10 percent to 1.56 million tons in July from a month earlier, while exports gained 2.7 percent to 1.45 million tons, according to a Bloomberg survey. The Malaysian Palm Oil Board is scheduled to release the data at 12:30 p.m.
“The market is quite uncertain,” Chandran Sinnasamy, head of trading at LT International Futures Sdn., said by phone from Kuala Lumpur. “July end-stocks may be higher due to the unexpected rise in production.”
Reserves were 1.65 million tons, matching those in June, the least since March 2011, the survey published Aug. 6 showed.
Prices are supported by the weaker ringgit which has made palm cheaper for foreign buyers, said Chandran. The Malaysian currency declined against the dollar to a three-year low today.
Soybean oil for delivery in December fell 0.2 percent to 42.86 cents a pound on the Chicago Board of Trade. Soybeans for November lost 0.3 percent to $12.2375 a bushel.
Refined palm oil for January delivery declined 0.3 percent to 5,554 yuan ($908) a ton on the Dalian Commodity Exchange. Soybean oil retreated 0.5 percent to 7,112 yuan a ton.