MARKET DEVELOPMENT
VEGOILS-Palm Oil Ends Higher on Export Growth; Demand Fears Cap Gains
VEGOILS-Palm Oil Ends Higher on Export Growth; Demand Fears Cap Gains
26/06/2013 (Reuters) - Malaysian palm oil futures inched higher on Tuesday on strong export data, although gains were capped as investors worried about China and U.S. demand outlooks.
Exports of Malaysian palm oil products from June 1 to 25 rose 9.6 percent from shipments over the same days in May to 1,167,266 tonnes, cargo surveyor Intertek Testing Services said on Tuesday.
But investors were concerned that a liquidity crunch in China, palm oil's second-largest buyer, and a tapering of the U.S. Federal Reserve's stimulus programme might shrink demand for commodities.
"Global economic fears are keeping the bulls at bay for now," said a trader with a local commodities brokerage in Kuala Lumpur. "But we may see a rebound on higher exports and potentially lower stocks."
The benchmark September contract on the Bursa Malaysia Derivatives Exchange inched up 0.3 percent to close at 2,412 ringgit ($758) per tonne on Tuesday, after trading in a
tight range between 2,396 and 2,421 ringgit.
Total traded volumes stood at 38,358 lots of 25 tonnes each, higher than the average 35,000 lots.
Planters expect palm oil demand to grow ahead of Ramadan in July, when consumption of the edible oil will rise as Muslims gather for communal feasts in the evenings.
On top of that, a weaker ringgit could spur more purchases of crude palm oil as the feedstock becomes cheaper for overseas buyers and refiners. The ringgit lost nearly 3 percent against the dollar last week, as the greenback rallied after the Fed's announcement.
The increase in exports may ease palm oil stocks further in June after a drop to 1.82 million tonnes last month, the lowest in nearly a year.
In other markets, Brent crude rose towards $102 a barrel on Tuesday, rebounding from a three-week low, as investor concern eased about a liquidity crunch in China and as Canadian pipeline closures threatened exports to the United States.
In vegetable oil markets, U.S. soyoil for July rose 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange also
gained 0.4 percent.
Palm, soy and crude oil prices at 1003 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL3 2400 +6.00 2385 2409 654
MY PALM OIL AUG3 2413 +4.00 2399 2422 7809
MY PALM OIL SEP3 2412 +8.00 2396 2421 18890
CHINA PALM OLEIN JAN4 5924 -26.00 5880 5966 655698
CHINA SOYOIL JAN4 7438 +32.00 7356 7456 899004
CBOT SOY OIL JUL3 47.72 +0.17 47.37 47.87 4365
NYMEX CRUDE AUG3 95.78 +0.60 94.59 95.95 31124
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=3.183 ringgit)
Exports of Malaysian palm oil products from June 1 to 25 rose 9.6 percent from shipments over the same days in May to 1,167,266 tonnes, cargo surveyor Intertek Testing Services said on Tuesday.
But investors were concerned that a liquidity crunch in China, palm oil's second-largest buyer, and a tapering of the U.S. Federal Reserve's stimulus programme might shrink demand for commodities.
"Global economic fears are keeping the bulls at bay for now," said a trader with a local commodities brokerage in Kuala Lumpur. "But we may see a rebound on higher exports and potentially lower stocks."
The benchmark September contract on the Bursa Malaysia Derivatives Exchange inched up 0.3 percent to close at 2,412 ringgit ($758) per tonne on Tuesday, after trading in a
tight range between 2,396 and 2,421 ringgit.
Total traded volumes stood at 38,358 lots of 25 tonnes each, higher than the average 35,000 lots.
Planters expect palm oil demand to grow ahead of Ramadan in July, when consumption of the edible oil will rise as Muslims gather for communal feasts in the evenings.
On top of that, a weaker ringgit could spur more purchases of crude palm oil as the feedstock becomes cheaper for overseas buyers and refiners. The ringgit lost nearly 3 percent against the dollar last week, as the greenback rallied after the Fed's announcement.
The increase in exports may ease palm oil stocks further in June after a drop to 1.82 million tonnes last month, the lowest in nearly a year.
In other markets, Brent crude rose towards $102 a barrel on Tuesday, rebounding from a three-week low, as investor concern eased about a liquidity crunch in China and as Canadian pipeline closures threatened exports to the United States.
In vegetable oil markets, U.S. soyoil for July rose 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange also
gained 0.4 percent.
Palm, soy and crude oil prices at 1003 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL3 2400 +6.00 2385 2409 654
MY PALM OIL AUG3 2413 +4.00 2399 2422 7809
MY PALM OIL SEP3 2412 +8.00 2396 2421 18890
CHINA PALM OLEIN JAN4 5924 -26.00 5880 5966 655698
CHINA SOYOIL JAN4 7438 +32.00 7356 7456 899004
CBOT SOY OIL JUL3 47.72 +0.17 47.37 47.87 4365
NYMEX CRUDE AUG3 95.78 +0.60 94.59 95.95 31124
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=3.183 ringgit)