MARKET DEVELOPMENT
Palm Drops to One-Week Low on Rising Global Vegetable Oil Supply
Palm Drops to One-Week Low on Rising Global Vegetable Oil Supply
20/11/2013 (Bloomberg) - Palm oil declined for a third day to the lowest level in more than a week as global production of soybeans and sunflower seeds may climb to a record, boosting cooking oil supplies.
Palm for delivery in February dropped as much as 0.4 percent to 2,545 ringgit ($799) a metric ton on the Bursa Malaysia Derivatives, the lowest price for a most-active contract since Nov. 12. Futures were at 2,552 ringgit at the midday break in Kuala Lumpur.
Farmers worldwide will harvest a record 286.5 million tons of soybeans, while sunflower seed output may reach an all-time high of 40.2 million tons, researcher Oil World said yesterday. “The global market will be less dependent on palm oil in the 2013-2014 season thanks to a steep increase in crushings and corresponding increases in seed oil production,” primarily from soybeans and sunflower seeds, Oil World said.
“There is pressure coming from the soy complex because production is expected to be better,” said Sandeep Bajoria, chief executive officer of Mumbai-based broker Sunvin Group. “Exports from Malaysia haven’t picked up much.”
Shipments from Malaysia, the world’s second-largest producer, dropped 2 percent to 1 million tons in the Nov. 1-20 period from a month earlier, surveyor Intertek said today.
“We expect that there will be a setback in palm oil prices within the next four to six weeks,” said Oil World, which estimated global output of the tropical oil at 58.73 million tons, 5.1 percent more than a year earlier. That included 30 million tons from Indonesia, the world’s biggest producer, and 19.88 million tons from Malaysia, it said.
Soybeans for January delivery rose 0.2 percent to $12.785 a bushel on the Chicago Board of Trade. Soybean oil gained 0.4 percent to 40.39 cents a pound.
Refined palm oil for May delivery was unchanged at 6,216 yuan ($1,020) a ton on the Dalian Commodity Exchange and soybean oil was little changed at 7,162 yuan.
Palm for delivery in February dropped as much as 0.4 percent to 2,545 ringgit ($799) a metric ton on the Bursa Malaysia Derivatives, the lowest price for a most-active contract since Nov. 12. Futures were at 2,552 ringgit at the midday break in Kuala Lumpur.
Farmers worldwide will harvest a record 286.5 million tons of soybeans, while sunflower seed output may reach an all-time high of 40.2 million tons, researcher Oil World said yesterday. “The global market will be less dependent on palm oil in the 2013-2014 season thanks to a steep increase in crushings and corresponding increases in seed oil production,” primarily from soybeans and sunflower seeds, Oil World said.
“There is pressure coming from the soy complex because production is expected to be better,” said Sandeep Bajoria, chief executive officer of Mumbai-based broker Sunvin Group. “Exports from Malaysia haven’t picked up much.”
Shipments from Malaysia, the world’s second-largest producer, dropped 2 percent to 1 million tons in the Nov. 1-20 period from a month earlier, surveyor Intertek said today.
“We expect that there will be a setback in palm oil prices within the next four to six weeks,” said Oil World, which estimated global output of the tropical oil at 58.73 million tons, 5.1 percent more than a year earlier. That included 30 million tons from Indonesia, the world’s biggest producer, and 19.88 million tons from Malaysia, it said.
Soybeans for January delivery rose 0.2 percent to $12.785 a bushel on the Chicago Board of Trade. Soybean oil gained 0.4 percent to 40.39 cents a pound.
Refined palm oil for May delivery was unchanged at 6,216 yuan ($1,020) a ton on the Dalian Commodity Exchange and soybean oil was little changed at 7,162 yuan.