MARKET DEVELOPMENT
Palm Oil Drops for First Time in Five Days as Shipments Decrease
Palm Oil Drops for First Time in Five Days as Shipments Decrease
27/12/2013 (Bloomberg) - Palm oil declined to snap four days of gains after data showed exports fell from Malaysia, the world’s second-largest producer.
The contract for March delivery lost as much as 0.6 percent to 2,610 ringgit ($792) a metric ton on the Bursa Malaysia Derivatives, and was at 2,617 ringgit by the midday break. Futures are set for a 7.3 percent advance this year as production dropped at plantations in Indonesia, the biggest supplier, and biodiesel demand increased.
Shipments from Malaysia fell 7.3 percent to 1.14 million tons in the first 25 days of December from a month earlier, Intertek said today. Global exports may decline in the year started Oct. 1 for the first time in 16 years, Hamburg-based researcher Oil World estimates.
“Export numbers are lower,” Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd., said by phone from Kuala Lumpur. “It’s a typical year-end pattern that demand slows down because of the winter in European countries” as the tropical oil clouds in cooler temperatures, he said.
World exports will total 43.75 million tons in the 2013-2014 season, down 1.1 percent from a year earlier, Oil World said Dec. 17. Shipments from Indonesia will decline 0.8 percent to 21 million tons, while exports from Malaysia will fall 2.2 percent to 18.1 million tons, it said.
Soybean oil for March delivery closed 0.4 percent lower at 39.41 cents a pound on the Chicago Board of Trade on Dec. 24, while soybeans gained 0.2 percent to $13.2275 a bushel.
Refined palm oil for May delivery climbed 0.4 percent to 5,948 yuan ($980) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 6,888 yuan.
The contract for March delivery lost as much as 0.6 percent to 2,610 ringgit ($792) a metric ton on the Bursa Malaysia Derivatives, and was at 2,617 ringgit by the midday break. Futures are set for a 7.3 percent advance this year as production dropped at plantations in Indonesia, the biggest supplier, and biodiesel demand increased.
Shipments from Malaysia fell 7.3 percent to 1.14 million tons in the first 25 days of December from a month earlier, Intertek said today. Global exports may decline in the year started Oct. 1 for the first time in 16 years, Hamburg-based researcher Oil World estimates.
“Export numbers are lower,” Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd., said by phone from Kuala Lumpur. “It’s a typical year-end pattern that demand slows down because of the winter in European countries” as the tropical oil clouds in cooler temperatures, he said.
World exports will total 43.75 million tons in the 2013-2014 season, down 1.1 percent from a year earlier, Oil World said Dec. 17. Shipments from Indonesia will decline 0.8 percent to 21 million tons, while exports from Malaysia will fall 2.2 percent to 18.1 million tons, it said.
Soybean oil for March delivery closed 0.4 percent lower at 39.41 cents a pound on the Chicago Board of Trade on Dec. 24, while soybeans gained 0.2 percent to $13.2275 a bushel.
Refined palm oil for May delivery climbed 0.4 percent to 5,948 yuan ($980) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 6,888 yuan.