MARKET DEVELOPMENT
Palm Oil Futures Decline as Production Seen Gaining in Malaysia
Palm Oil Futures Decline as Production Seen Gaining in Malaysia
26/11/2013 (Bloomberg) - Palm oil dropped for a second day on speculation that output in Malaysia is poised to climb this month, adding to the highest stockpiles in six months in the world’s second-biggest producer.
The contract for delivery in February lost 0.5 percent to close at 2,629 ringgit ($817) a metric ton on the Bursa Malaysia Derivatives. Futures rallied to 2,692 ringgit on Nov. 22, the highest level for the most-active contract since September 2012, extending a bull market on concern that output will trail analysts’ estimates for Indonesia, the biggest supplier.
Malaysia’s output gained about 4.1 percent in the first 20 days of this month according to planters, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari Sdn. in Selangor. Reserves were at 1.85 million tons in October, the highest since April, according to the Malaysian Palm Oil Board. The board will release data for November on Dec. 10.
“Higher production may lead to a slight increase in stockpiles,” said Paramalingam. Inventories may gain 2 percent in November from a month earlier, he said.
Indonesia raised its palm oil export tax to 12 percent for December from 9 percent this month, Faiz Achmad, director of food and industry at the Industry Ministry said today. Malaysia increased its duty on shipments to 5 percent for next month.
Refined palm oil for May delivery gained 0.2 percent to close at 6,450 yuan ($1,059) a ton on the Dalian Commodity Exchange. Soybean oil climbed 0.2 percent to end at 7,314 yuan.
Soybeans for January delivery lost 0.3 percent to $13.15 a bushel on the Chicago Board of Trade. Soybean oil fell 0.3 percent to 41.34 cents a pound.
The contract for delivery in February lost 0.5 percent to close at 2,629 ringgit ($817) a metric ton on the Bursa Malaysia Derivatives. Futures rallied to 2,692 ringgit on Nov. 22, the highest level for the most-active contract since September 2012, extending a bull market on concern that output will trail analysts’ estimates for Indonesia, the biggest supplier.
Malaysia’s output gained about 4.1 percent in the first 20 days of this month according to planters, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari Sdn. in Selangor. Reserves were at 1.85 million tons in October, the highest since April, according to the Malaysian Palm Oil Board. The board will release data for November on Dec. 10.
“Higher production may lead to a slight increase in stockpiles,” said Paramalingam. Inventories may gain 2 percent in November from a month earlier, he said.
Indonesia raised its palm oil export tax to 12 percent for December from 9 percent this month, Faiz Achmad, director of food and industry at the Industry Ministry said today. Malaysia increased its duty on shipments to 5 percent for next month.
Refined palm oil for May delivery gained 0.2 percent to close at 6,450 yuan ($1,059) a ton on the Dalian Commodity Exchange. Soybean oil climbed 0.2 percent to end at 7,314 yuan.
Soybeans for January delivery lost 0.3 percent to $13.15 a bushel on the Chicago Board of Trade. Soybean oil fell 0.3 percent to 41.34 cents a pound.