MARKET DEVELOPMENT
VEGOILS-Palm Oil Down for 3rd Day After Stocks Swell to 6-month High
VEGOILS-Palm Oil Down for 3rd Day After Stocks Swell to 6-month High
(Recasts, adds analyst quote, adds SGS data)
* Malaysia June 1-10 palm oil exports up 2 pct m/m-cargo surveyors
* Malaysia May palm stocks rise 2.5 pct to 2.24 mln T -MPOB
* Ringgit edges up to 3.7325 per U.S. dollar
11/06/2015 (Reuters) - Malaysian palm oil futures notched their third straight day of losses on Wednesday after an industry report showed inventories in the world's second-biggest producer swelled to a six-month high in May.
The Malaysian Palm Oil Board released figures showing palm inventories at the end of May rose 2.5 percent to 2.24 million tonnes, their highest since November, against market estimates for a fall to 2.14 million tonnes.
The rise in inventories may pull the plug on palm's short-lived rally to an over three-month top on Monday, which was boosted by anticipation of bigger biodiesel consumption and the ringgit currency which slid to nine-year lows.
"The higher stockpile was due to stronger-than-expected output which is negative for the near-term crude palm oil price," said Ivy Ng, regional head of plantations research at CIMB Investment Bank.
"We expect stocks to rise further in June, driven by the seasonally-higher CPO output. This could dampen CPO prices unless demand picks up significantly or poor weather caused by El Nino adversely affects production," Ng added.
The August palm oil contract on the Bursa Malaysia Derivatives exchange fell 1.2 percent to 2,290 ringgit
($613.53) a tonne by the day's close.
Total traded volume stood at 29,243 lots of 25 tonnes each, below the usual 35,000 lots.
Cargo surveyor Intertek Testing Services on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose 2.2 percent to 468,975 tonnes from 458,677 tonnes shipped during May 1-10, signalling a slowdown to robust buying last month.
Another surveyor Societe Generale de Surveillance reported a 1.9 percent increase in the same period.
"Demand may be tapering off. You're moving towards the festive season, exports may slow down. You'd usually buy 1-2 months ahead of the Ramadan month," a trader with a foreign commodities brokerage in Kuala Lumpur trader said.
Buyers typically replenish edible oil supplies ahead of the Muslim holy month of Ramadan in mid-June, marked by communal fasting and feasting that tends to drive up consumption.
The Malaysian ringgit edged up on Wednesday to 3.7325 per U.S. dollar by 1014 GMT, after hitting its lowest in nine-years at the start of the week.
Oil prices rose on Wednesday after a report of falling U.S. inventories and signs that U.S. oil production growth was levelling off after several years of very sharp increases.
In other vegetable oil markets, the U.S. July soyoil contract rose 0.4 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange was flat.
Palm, soy and crude oil prices at 1018 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2280 -25.00 2280 2291 6
MY PALM OIL JUL5 2288 -25.00 2280 2311 1327
MY PALM OIL AUG5 2290 -27.00 2281 2315 18090
CHINA PALM OLEIN JAN6 5252 -20.00 5216 5310 895620
CHINA SOYOIL SEP5 5742 +0.00 5712 5756 356548
CBOT SOY OIL JUL5 34.05 -2.70 33.88 34.07 9364
INDIA PALM OIL JUN5 458.00 -2.70 457.10 460.00 1220
INDIA SOYOIL JUN5 609.20 -1.00 607.50 610.50 4885
NYMEX CRUDE JUL5 61.40 +1.26 60.45 61.75 48407
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
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 3.7325 ringgit)
($1 = 6.2061 Chinese yuan)
($1 = 63.84 Indian rupees)
* Malaysia June 1-10 palm oil exports up 2 pct m/m-cargo surveyors
* Malaysia May palm stocks rise 2.5 pct to 2.24 mln T -MPOB
* Ringgit edges up to 3.7325 per U.S. dollar
11/06/2015 (Reuters) - Malaysian palm oil futures notched their third straight day of losses on Wednesday after an industry report showed inventories in the world's second-biggest producer swelled to a six-month high in May.
The Malaysian Palm Oil Board released figures showing palm inventories at the end of May rose 2.5 percent to 2.24 million tonnes, their highest since November, against market estimates for a fall to 2.14 million tonnes.
The rise in inventories may pull the plug on palm's short-lived rally to an over three-month top on Monday, which was boosted by anticipation of bigger biodiesel consumption and the ringgit currency which slid to nine-year lows.
"The higher stockpile was due to stronger-than-expected output which is negative for the near-term crude palm oil price," said Ivy Ng, regional head of plantations research at CIMB Investment Bank.
"We expect stocks to rise further in June, driven by the seasonally-higher CPO output. This could dampen CPO prices unless demand picks up significantly or poor weather caused by El Nino adversely affects production," Ng added.
The August palm oil contract on the Bursa Malaysia Derivatives exchange fell 1.2 percent to 2,290 ringgit
($613.53) a tonne by the day's close.
Total traded volume stood at 29,243 lots of 25 tonnes each, below the usual 35,000 lots.
Cargo surveyor Intertek Testing Services on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose 2.2 percent to 468,975 tonnes from 458,677 tonnes shipped during May 1-10, signalling a slowdown to robust buying last month.
Another surveyor Societe Generale de Surveillance reported a 1.9 percent increase in the same period.
"Demand may be tapering off. You're moving towards the festive season, exports may slow down. You'd usually buy 1-2 months ahead of the Ramadan month," a trader with a foreign commodities brokerage in Kuala Lumpur trader said.
Buyers typically replenish edible oil supplies ahead of the Muslim holy month of Ramadan in mid-June, marked by communal fasting and feasting that tends to drive up consumption.
The Malaysian ringgit edged up on Wednesday to 3.7325 per U.S. dollar by 1014 GMT, after hitting its lowest in nine-years at the start of the week.
Oil prices rose on Wednesday after a report of falling U.S. inventories and signs that U.S. oil production growth was levelling off after several years of very sharp increases.
In other vegetable oil markets, the U.S. July soyoil contract rose 0.4 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange was flat.
Palm, soy and crude oil prices at 1018 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2280 -25.00 2280 2291 6
MY PALM OIL JUL5 2288 -25.00 2280 2311 1327
MY PALM OIL AUG5 2290 -27.00 2281 2315 18090
CHINA PALM OLEIN JAN6 5252 -20.00 5216 5310 895620
CHINA SOYOIL SEP5 5742 +0.00 5712 5756 356548
CBOT SOY OIL JUL5 34.05 -2.70 33.88 34.07 9364
INDIA PALM OIL JUN5 458.00 -2.70 457.10 460.00 1220
INDIA SOYOIL JUN5 609.20 -1.00 607.50 610.50 4885
NYMEX CRUDE JUL5 61.40 +1.26 60.45 61.75 48407
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
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 3.7325 ringgit)
($1 = 6.2061 Chinese yuan)
($1 = 63.84 Indian rupees)