MARKET DEVELOPMENT
Palm Swings as Investors Weigh Weak Exports Against Output Drop
Palm Swings as Investors Weigh Weak Exports Against Output Drop
13/11/2013 (Bloomberg) - Palm oil fluctuated on speculation that falling exports from Malaysia, the world’s second-largest producer, may boost inventories even as output starts to taper.
The contract for January delivery retreated and gained at least 0.3 percent on the Bursa Malaysia Derivatives, and ended the morning session at 2,530 ringgit ($790) a metric ton. Prices declined 4.6 percent last week, the most since the five days ending March 29.
Shipments from Malaysia fell 13 percent to 472,321 tons in the first 10 days of November from the same period last month, surveyor Intertek said yesterday. Production of the tropical oil, used in everything from candy to biofuel, is typically highest from July to October because of growing cycles.
“The weaker exports signal that inventories could be slightly higher this month,” said Chandran Sinnasamy, head of trading at LT International Futures Sdn., in Kuala Lumpur.
Stockpiles rose 3.5 percent in October to 1.85 million tons from a month earlier, the Malaysian Palm Oil Board said yesterday. Production gained 3.1 percent to 1.97 million tons, while exports rose 3.3 percent to 1.66 million tons.
“The higher inventories have been slightly negative for the market,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. Production is plateauing and could weaken from November onward, supporting prices, she said.
Soybean oil for December delivery fell 0.4 percent to 40.27 cents a pound on the Chicago Board of Trade. Soybeans for delivery in January were little changed at $12.995 a bushel.
Refined palm oil for May delivery dropped 0.3 percent to 6,164 yuan ($1,012) a ton on the Dalian Commodity Exchange and soybean oil slid 0.2 percent to 7,116 yuan.
The contract for January delivery retreated and gained at least 0.3 percent on the Bursa Malaysia Derivatives, and ended the morning session at 2,530 ringgit ($790) a metric ton. Prices declined 4.6 percent last week, the most since the five days ending March 29.
Shipments from Malaysia fell 13 percent to 472,321 tons in the first 10 days of November from the same period last month, surveyor Intertek said yesterday. Production of the tropical oil, used in everything from candy to biofuel, is typically highest from July to October because of growing cycles.
“The weaker exports signal that inventories could be slightly higher this month,” said Chandran Sinnasamy, head of trading at LT International Futures Sdn., in Kuala Lumpur.
Stockpiles rose 3.5 percent in October to 1.85 million tons from a month earlier, the Malaysian Palm Oil Board said yesterday. Production gained 3.1 percent to 1.97 million tons, while exports rose 3.3 percent to 1.66 million tons.
“The higher inventories have been slightly negative for the market,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. Production is plateauing and could weaken from November onward, supporting prices, she said.
Soybean oil for December delivery fell 0.4 percent to 40.27 cents a pound on the Chicago Board of Trade. Soybeans for delivery in January were little changed at $12.995 a bushel.
Refined palm oil for May delivery dropped 0.3 percent to 6,164 yuan ($1,012) a ton on the Dalian Commodity Exchange and soybean oil slid 0.2 percent to 7,116 yuan.