MARKET DEVELOPMENT
RPT-VEGOILS-Palm Ends Higher on Output, Weak Exports Curb Gains
RPT-VEGOILS-Palm Ends Higher on Output, Weak Exports Curb Gains
01/06/2013 (Reuters) - Malaysian palm oil futures rose on Friday as traders bet on slowing production, notching a fourth straight weekly gain, although lacklustre exports weighed.
Exports of Malaysian palm oil products fell more than 3 percent in May compared to a month ago, cargo surveyor data showed, as shipments to Europe and China slowed. Demand from India, however, rose as buyers stocked up ahead of a Muslim holy
festival.
Investors, who had been expecting a demand surge ahead of the Ramadan month when communal fasting normally drives up consumption, will look to output data due on June 10 for more trading clues.
"Exports in Malaysia are slow but Indonesia is pushing out more cargoes to meet Ramadan demand," said a trader with a foreign commodities brokerage.
"Production is not looking good this month and the monthafter. The market will probably go higher then."
The benchmark August contract on the Bursa Malaysia Derivatives Exchange settled up 1.1 percent at 2,399 ringgit ($780) per tonne.
Total traded volumes stood at 23,023 lots of 25 tonnes each, below the average 25,000 lots.
Technicals showed palm oil seems to have stabilised above a support at 2,362 ringgit per tonne and is expected to recover its drop from Wednesday's high of 2,420 ringgit, Reuters market analyst Wang Tao said.
Palm oil is on track to notch its first monthly gain since January, with a near 4 percent rise that was underpinned by investor hopes of a cut in stocks due to near-stagnant production levels and increased buying.
End-stocks in Malaysia, the world's second-largest producer, currently stand at 1.93 million tonnes.
In other markets, oil slipped towards $102 a barrel on Friday as a surprise jump in U.S. crude stockpiles fuelled worries about demand from the top consumer, but a softer dollar amid hopes the Federal Reserve would maintain its stimulus checked losses.
In vegetable oil markets, U.S. soyoil for July delivery rose 0.1 percent in late Asian trade, drawing support from concerns that a slowing pace of soybean plantings in the U.S. will curb yields. The most-active September soybean oil contract on the Dalian Commodities Exchange ended up 0.1 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2360 +34.00 2334 2360 43
MY PALM OIL JUL3 2392 +23.00 2370 2393 2396
MY PALM OIL AUG3 2399 +27.00 2373 2399 12318
CHINA PALM OLEIN SEP3 6140 -10.00 6130 6182 323952
CHINA SOYOIL SEP3 7480 +8.00 7468 7530 474020
CBOT SOY OIL JUL3 48.66 +0.08 48.51 48.70 4152
NYMEX CRUDE JUL3 92.80 -0.81 92.68 93.85 16284
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 = 3.0735 Malaysian ringgit)
Exports of Malaysian palm oil products fell more than 3 percent in May compared to a month ago, cargo surveyor data showed, as shipments to Europe and China slowed. Demand from India, however, rose as buyers stocked up ahead of a Muslim holy
festival.
Investors, who had been expecting a demand surge ahead of the Ramadan month when communal fasting normally drives up consumption, will look to output data due on June 10 for more trading clues.
"Exports in Malaysia are slow but Indonesia is pushing out more cargoes to meet Ramadan demand," said a trader with a foreign commodities brokerage.
"Production is not looking good this month and the monthafter. The market will probably go higher then."
The benchmark August contract on the Bursa Malaysia Derivatives Exchange settled up 1.1 percent at 2,399 ringgit ($780) per tonne.
Total traded volumes stood at 23,023 lots of 25 tonnes each, below the average 25,000 lots.
Technicals showed palm oil seems to have stabilised above a support at 2,362 ringgit per tonne and is expected to recover its drop from Wednesday's high of 2,420 ringgit, Reuters market analyst Wang Tao said.
Palm oil is on track to notch its first monthly gain since January, with a near 4 percent rise that was underpinned by investor hopes of a cut in stocks due to near-stagnant production levels and increased buying.
End-stocks in Malaysia, the world's second-largest producer, currently stand at 1.93 million tonnes.
In other markets, oil slipped towards $102 a barrel on Friday as a surprise jump in U.S. crude stockpiles fuelled worries about demand from the top consumer, but a softer dollar amid hopes the Federal Reserve would maintain its stimulus checked losses.
In vegetable oil markets, U.S. soyoil for July delivery rose 0.1 percent in late Asian trade, drawing support from concerns that a slowing pace of soybean plantings in the U.S. will curb yields. The most-active September soybean oil contract on the Dalian Commodities Exchange ended up 0.1 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2360 +34.00 2334 2360 43
MY PALM OIL JUL3 2392 +23.00 2370 2393 2396
MY PALM OIL AUG3 2399 +27.00 2373 2399 12318
CHINA PALM OLEIN SEP3 6140 -10.00 6130 6182 323952
CHINA SOYOIL SEP3 7480 +8.00 7468 7530 474020
CBOT SOY OIL JUL3 48.66 +0.08 48.51 48.70 4152
NYMEX CRUDE JUL3 92.80 -0.81 92.68 93.85 16284
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 = 3.0735 Malaysian ringgit)