MARKET DEVELOPMENT
VEGOILS-Palm Rises to 2-week High on Easing Stocks, Gains 3 Pct on Week
VEGOILS-Palm Rises to 2-week High on Easing Stocks, Gains 3 Pct on Week
11/05/2013 (Reuters) - Malaysian palm oil futures climbed to their highest in two weeks on Friday as stocks eased below the key 2-million-tonne mark in the world's No.2 producer, but gains were capped by a surprise fall in exports in the first ten days of May.
Stocks data from industry regulator the Malaysian Palm Oil Board showed inventory levels at the end of April down 11.3 percent to 1.93 million tonnes against the previous month's 2.17 million tonnes.
The decline exceeded expectations of a fall to 2.04 million tonnes, in a Reuters poll.
But exports of palm oil products for May 1-10 slid 16.7 percent to 380,047 tonnes compared to the same period in April, as smaller shipments of the crude and refined grade weighed. Demand from Europe and China was also sluggish.
Another cargo surveyor Societe Generale de Surveillance reported a steeper 18.4 percent drop late on Friday.
"Traders were reacting to stocks falling below 2 million tonnes, so we see a strong market today. But lower exports for the first 10 days may erase some gains," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange rose as high as 2,334 ringgit per tonne, a level last seen on April 26. It closed at 2,320 ringgit ($777), up 1.4 percent.
Positive investor sentiment helped palm post a 3 percent weekly gain, its biggest in seven.
Total traded volumes stood at 29,844 lots of 25 tonnes each, slightly lower than the average 35,000 lots.
Prices dipped to a near 5-month low on Monday after the ringgit surged against the dollar following the ruling coalition's win in Malaysia's general elections. It later rose on bargain hunting and expectations of a drop in inventories.
In other markets, Brent crude oil slid below $104 a barrel on Friday as rising supplies and doubts over China's economy outweighed stronger signs of a U.S. recovery.
In vegetable oil markets, U.S. soyoil for July delivery was almost flat in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 2.1 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2290 +2.00 2280 2290 29
MY PALM OIL JUN3 2306 +26.00 2295 2324 1188
MY PALM OIL JUL3 2320 +33.00 2296 2334 13670
CHINA PALM OLEIN SEP3 6120 +152.00 5974 6146 904302
CHINA SOYOIL SEP3 7530 +156.00 7376 7538 1188546
CBOT SOY OIL JUL3 49.22 +0.00 49.01 49.51 4909
NYMEX CRUDE JUN3 95.71 -0.68 95.59 96.24 29282
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=2.99 ringgit)
Stocks data from industry regulator the Malaysian Palm Oil Board showed inventory levels at the end of April down 11.3 percent to 1.93 million tonnes against the previous month's 2.17 million tonnes.
The decline exceeded expectations of a fall to 2.04 million tonnes, in a Reuters poll.
But exports of palm oil products for May 1-10 slid 16.7 percent to 380,047 tonnes compared to the same period in April, as smaller shipments of the crude and refined grade weighed. Demand from Europe and China was also sluggish.
Another cargo surveyor Societe Generale de Surveillance reported a steeper 18.4 percent drop late on Friday.
"Traders were reacting to stocks falling below 2 million tonnes, so we see a strong market today. But lower exports for the first 10 days may erase some gains," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange rose as high as 2,334 ringgit per tonne, a level last seen on April 26. It closed at 2,320 ringgit ($777), up 1.4 percent.
Positive investor sentiment helped palm post a 3 percent weekly gain, its biggest in seven.
Total traded volumes stood at 29,844 lots of 25 tonnes each, slightly lower than the average 35,000 lots.
Prices dipped to a near 5-month low on Monday after the ringgit surged against the dollar following the ruling coalition's win in Malaysia's general elections. It later rose on bargain hunting and expectations of a drop in inventories.
In other markets, Brent crude oil slid below $104 a barrel on Friday as rising supplies and doubts over China's economy outweighed stronger signs of a U.S. recovery.
In vegetable oil markets, U.S. soyoil for July delivery was almost flat in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 2.1 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2290 +2.00 2280 2290 29
MY PALM OIL JUN3 2306 +26.00 2295 2324 1188
MY PALM OIL JUL3 2320 +33.00 2296 2334 13670
CHINA PALM OLEIN SEP3 6120 +152.00 5974 6146 904302
CHINA SOYOIL SEP3 7530 +156.00 7376 7538 1188546
CBOT SOY OIL JUL3 49.22 +0.00 49.01 49.51 4909
NYMEX CRUDE JUN3 95.71 -0.68 95.59 96.24 29282
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=2.99 ringgit)