VEGOILS-Palm edges down to near 2-wk low ahead of industry report - RTRS 08-Nov-2013 18:30 • Prices fall on technical selling - trader • Malaysian Oct palm stocks seen up 2.2 pct to 1.82 mln T - Reuters poll • Palm oil still targets 2,491 ringgit - technicals • U.S. trans fat ban could boost palm oil demand By Anuradha Raghu KUALA LUMPUR, Nov 8 (Reuters) - Malaysian palm oil futures slipped to a near two-week low on Friday as a bout of technical selling pressured prices, but the market was range-bound ahead of a key industry report on production and stocks in the worlds No.2 producer. A surge in the palm market last Friday prompted a round of profit-taking and a technical correction this week, stretching losses into a fourth straight day and dragged prices to post their biggest weekly loss since early March. Market players are waiting for official data on Malaysian end-October palm oil stocks, exports and output that will be released on Monday by industry regulator, the Malaysian Palm Oil Board (MPOB). A Reuters survey on Thursday showed that Malaysian palm oil stocks probably inched up to 1.82 million tonnes in October, with the increase in inventories limited as the seasonally high-cycle began to wane and monsoon rains dented production.(Full Story) This is the fourth day the market is down. There is a correction in prices and some technical selling going on. The focus will be on Monday for the MPOB data, said a trader with a foreign commodities brokerage. The market is trading in a range. If the stocks and production go higher than expected, the market will try to test the 2,500 ringgit support level, the trader added. By Fridays close, the benchmark January contract FCPOc3 on the Bursa Malaysia Derivatives Exchange had fallen 1.5 percent to 2,506 ringgit ($788) per tonne. Prices traded in a range between 2,506-2,540 ringgit, and have shed 4.6 percent so far this week -- the steepest weekly drop in about 8 months. Total traded volume stood at 28,901 lots of 25 tonnes each, lower than the usual 35,000 lots as some investors stayed on the sidelines ahead of the official stocks report. Technicals showed that Malaysian palm oil is expected to fall further to 2,491 ringgit, as it has broken below support at 2,544 ringgit per tonne, said Reuters market analyst Wang Tao. (Full Story) In other markets, Brent futures held steady above $103 a barrel on Friday as a rebound in export growth added to signs of an improving economy in the second-biggest oil consumer, overshadowing a fall in crude imports to a 13-month low. O/R A U.S. plan to ban artificial trans fats in processed foods could strip away as much as 15 percent of the nations edible soyoil demand, industry officials say, and give way to alternative vegetable oils such as palm oil to replace the partially hydrogenated soyoil used in foods ranging from cookies to frozen pizza. (Full Story) Investors will also be keeping watch on export data for the first 10 days of November, which will also be released on Monday, to gauge demand for the tropical oil especially from major buyer China. Traders say Chinese buyers could start re-stocking palm oil ahead of its spring festival celebrated early next year. In the vegetable oil markets, the U.S. soyoil contract for December BOZ3 fell 0.9 percent in late Asian trade. The most-active May soybean oil contract DBYcv1 on the Dalian Commodities Exchange fell 0.6 percent. Palm, soy and crude oil prices at 1012 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV3 2510 -35.00 2510 2525 172 MY PALM OIL DEC3 2508 -35.00 2506 2531 1049 MY PALM OIL JAN4 2506 -38.00 2506 2540 15065 CHINA PALM OLEIN MAY4 6228 -42.00 6192 6274 669258 CHINA SOYOIL MAY4 7160 -42.00 7140 7190 651058 CBOT SOY OIL DEC3 40.39 -0.35 40.39 40.79 4939 NYMEX CRUDE DEC3 94.46 +0.26 94.16 94.66 14478 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 = 3.18 Malaysian ringgit)
Posted on: Mon, 11 Nov 2013 11:16:53 +0000
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