MARKET DEVELOPMENT
Palm Drops to Two-Week Low as Output Seen Rising, Exports Fall
Palm Drops to Two-Week Low as Output Seen Rising, Exports Fall
06/06/2013 (Bloomberg) - Palm oil fell to the lowest in almost two weeks after a survey showed that output in Malaysia, the world’s second-largest producer, climbed for a third straight month in May and exports declined.
The contract for August delivery dropped as much as 0.5 percent to 2,364 ringgit ($768) a metric ton on the Bursa Malaysia Derivatives, the lowest price for the most-active futures since May 23, and ended the morning session at 2,368 ringgit. Palm for physical delivery in June was at 2,355 ringgit today, according to data compiled by Bloomberg.
Output increased 4.6 percent to 1.43 million tons last month, while exports declined 2 percent to 1.42 million tons, the median of estimates from two plantation companies and three analysts in a Bloomberg survey showed. Stockpiles dropped 3.5 percent to 1.86 million tons, the least since June 2012, the survey showed. The Malaysian Palm Oil Board is scheduled to release official data on June 10.
“The higher production in the coming months is of concern to the market,” said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. “The uncertainty over demand may also worry the market.”
Output in Malaysia may advance to a record 19.4 million tons this year after plantations in the main growing state of Sabah received ample rain, Oil World said. Exports may be as much as 18.8 million tons, up from 17.6 million tons last year, the Hamburg-based researcher said yesterday.
Soybean oil for July dropped 0.4 percent to 48.42 cents a pound on the Chicago Board of Trade, while soybeans fell 0.2 percent to $15.255 a bushel. Refined palm oil for September delivery retreated 0.4 percent to 6,080 yuan ($992) a ton on the Dalian Commodity Exchange, while soybean oil was little changed at 7,418 yuan.
The contract for August delivery dropped as much as 0.5 percent to 2,364 ringgit ($768) a metric ton on the Bursa Malaysia Derivatives, the lowest price for the most-active futures since May 23, and ended the morning session at 2,368 ringgit. Palm for physical delivery in June was at 2,355 ringgit today, according to data compiled by Bloomberg.
Output increased 4.6 percent to 1.43 million tons last month, while exports declined 2 percent to 1.42 million tons, the median of estimates from two plantation companies and three analysts in a Bloomberg survey showed. Stockpiles dropped 3.5 percent to 1.86 million tons, the least since June 2012, the survey showed. The Malaysian Palm Oil Board is scheduled to release official data on June 10.
“The higher production in the coming months is of concern to the market,” said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. “The uncertainty over demand may also worry the market.”
Output in Malaysia may advance to a record 19.4 million tons this year after plantations in the main growing state of Sabah received ample rain, Oil World said. Exports may be as much as 18.8 million tons, up from 17.6 million tons last year, the Hamburg-based researcher said yesterday.
Soybean oil for July dropped 0.4 percent to 48.42 cents a pound on the Chicago Board of Trade, while soybeans fell 0.2 percent to $15.255 a bushel. Refined palm oil for September delivery retreated 0.4 percent to 6,080 yuan ($992) a ton on the Dalian Commodity Exchange, while soybean oil was little changed at 7,418 yuan.