MARKET DEVELOPMENT
Palm Oil Pares Biggest Monthly Gain Since 2010 on Soy Outlook
Palm Oil Pares Biggest Monthly Gain Since 2010 on Soy Outlook
30/08/2013 (Bloomberg) - Palm oil fell for a second day to a one-week low, paring the biggest monthly gain since December 2010, as improved weather in the U.S. boosted output prospects for soybeans, which are crushed to make an alternative oil.
Palm for November delivery declined 1.2 percent to 2,410 ringgit ($734) a metric ton on the Bursa Malaysia Derivatives, the lowest closing level for the most-active contract since Aug. 23. Palm for physical delivery in September was at 2,450 ringgit, data compiled by Bloomberg show.
Futures rose 7.8 percent this month as a weaker ringgit boosted exports prospects from Malaysia, the second-biggest producer, and on speculation that dry weather in the U.S. may cut soybean output. In the U.S., rains across central and eastern areas of the Midwest this weekend will improve moisture slightly for soybean and corn growth, MDA Information Systems LLC said in a five-day forecast yesterday. Soybeans fell today.
“The soy complex, which has been the catalyst for the positive movement, has corrected today because of better weather and this is rubbing off on palm,” said Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services Pvt., by phone from Mumbai. “Fresh demand from current levels looks unlikely and will resurface only once there is a correction.”
Soybeans for November delivery lost as much as 1.6 percent to $13.46 a bushel on the Chicago Board of Trade, the lowest since Aug. 23, and were at $13.54. Soybean oil for delivery in December declined 0.4 percent to 44.03 cents a pound.
Refined palm oil for January delivery fell 0.7 percent to close at 5,554 yuan ($908) a ton on the Dalian Commodity Exchange. Soybean oil declined 0.7 percent to end at 7,172 yuan a ton.
Palm for November delivery declined 1.2 percent to 2,410 ringgit ($734) a metric ton on the Bursa Malaysia Derivatives, the lowest closing level for the most-active contract since Aug. 23. Palm for physical delivery in September was at 2,450 ringgit, data compiled by Bloomberg show.
Futures rose 7.8 percent this month as a weaker ringgit boosted exports prospects from Malaysia, the second-biggest producer, and on speculation that dry weather in the U.S. may cut soybean output. In the U.S., rains across central and eastern areas of the Midwest this weekend will improve moisture slightly for soybean and corn growth, MDA Information Systems LLC said in a five-day forecast yesterday. Soybeans fell today.
“The soy complex, which has been the catalyst for the positive movement, has corrected today because of better weather and this is rubbing off on palm,” said Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services Pvt., by phone from Mumbai. “Fresh demand from current levels looks unlikely and will resurface only once there is a correction.”
Soybeans for November delivery lost as much as 1.6 percent to $13.46 a bushel on the Chicago Board of Trade, the lowest since Aug. 23, and were at $13.54. Soybean oil for delivery in December declined 0.4 percent to 44.03 cents a pound.
Refined palm oil for January delivery fell 0.7 percent to close at 5,554 yuan ($908) a ton on the Dalian Commodity Exchange. Soybean oil declined 0.7 percent to end at 7,172 yuan a ton.