VEGOILS-Palm declines after new EU law on commodities linked to deforestation
06/12/2011 (Nasdaq), Jakarta - Malaysian palm oil futures fell on Wednesday after the European Union agreed on a new law to prevent companies from selling into its market commodities linked to deforestation.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange dropped 1.22% to 4,044 ringgit ($920.56) a tonne in early trade, after rising more than 3% in the previous session.
FUNDAMENTALS
* The European Union agreed on Tuesday on a new law to prevent companies from selling into the EU market coffee, beef, soy and other commodities linked to deforestation around the world.
* Dalian's most active soyoil contract DBYv1 was trading 0.41% lower, while its palm oil contract DCPv1 gained 0.57%. Soyoil prices on the Chicago Board of Trade BOc2 gained 0.42%.
* Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
* Palm oil imports by India, the world's top vegetable oil importer, jumped 29% in November from a month ago, five dealers told Reuters on Tuesday. A steep discount to rivals soyoil and sunoil made buying the tropical oil lucrative for local refiners.
* Indonesia's president asked his cabinet minister to create a mechanism next year to ensure the rollout of B35 biodiesel, which contains a 35% mix of palm oil-based fuel, a senior official said on Tuesday. The world's largest palm oil producer currently has a mandatory B30 and is finalising trials for B40.
MARKET NEWS
* Asia's stock markets wobbled lower as reality bit on hopes for a soft economic landing in the United States, and investors curbed their enthusiasm about China's reopening.MKTS/GLOB
* Oil prices were mixed in early Asian trade after falling to their lowest settlement levels this year as economic uncertainty and the prospect of higher interest rates pressured prices. O/R
DATA/EVENTS (GMT)
0030 Australia Real GDP QQ, YY SA Q3
0300 China Exports, Imports YY Nov
0300 China Trade Balance Nov
0700 Germany Industrial Output MM Oct
0700 Germany Industrial Production YY Oct
0700 UK Halifax House Prices MM, YY Nov
0745 France Reserve Assets Total Nov
1000 EU GDP Revised QQ, YY Q3
($1 = 4.3930 ringgit)
(Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)