VEGOILS-Palm oil ends lower for third day, Greece deal eyed

Thu Nov 22, 2012 5:14am EST

Related Topics

* Slowing exports may lead to another record high for stocks
in Nov
    * Lenders to meet again on Monday to discuss Greece bailout
deal
    * Palm oil to drop to 2,321 ringgit -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, Nov 22 (Reuters) - Malaysian palm oil futures
fell on Thursday, slipping for a third straight day, as slowing
exports continued to weigh and investors stayed cautious ahead
of a bailout deal for Greece that could boost sentiment.
    International lenders will meet again next Monday after they
failed for the second week to reach a deal to release emergency
aid for Greece, but major lender Germany signalled that
significant divisions remain. 
    Cargo surveyor data showed Malaysian exports of palm
products for the first 20 days of November inched lower from a
month ago, and while the fall was not significant, it
nonetheless fuelled concern at a time when stocks had climbed to
a record 2.51 million tonnes in October. 
    "The price outlook for crude palm oil has deteriorated. With
the cargo surveyors' export data for the first 20 days of
November showing a decline of about 3 percent, we see a higher
possibility now of November's inventory level to register
another record high," Alan Lim Seong Chun, research analyst with
Malaysia's Kenanga Investment Bank, said in a note on Thursday.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange slid 1.3 percent to close at 2,411
ringgit ($788) per tonne. Prices traded in a range of 2,399 to
2,449 ringgit.
    Total traded volumes stood at 36,386 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Technicals showed palm oil is expected to drop to 2,321
ringgit as it did not break a resistance at 2,464 ringgit, said
Reuters market analyst Wang Tao. 
    Traders will be looking for clues from the meeting next
Monday after European demand for palm oil showed signs of
slowing. It could take a further hit if international lenders
fail again to agree on how to get Greece's debt down to a
sustainable level.     
    In related markets, Brent crude was steady near $111 per
barrel on Thursday as the Chinese economy showed further signs
of recovery, boosting the outlook for oil demand, although the
upside was limited as a ceasefire in the Gaza Strip eased
concerns over supply. 
    In other vegetable oil markets, the most active May 2013
soybean oil contract on the Dalian Commodity Exchange
closed 0.2 percent higher. The U.S. financial markets were
closed for the Thanksgiving holiday.     
  Palm, soy and crude oil prices at 1002 GMT
                                                                                         
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2300   -40.00    2285    2340     377
  MY PALM OIL      JAN3    2373   -29.00    2362    2411    5968
  MY PALM OIL      FEB3    2411   -32.00    2399    2449   16451
  CHINA PALM OLEIN MAY3    6770   +12.00    6744    6798  398160
  CHINA SOYOIL     MAY3    8534   +18.00    8510    8562  452160
  CBOT SOY OIL     DEC2   48.53    +0.00    0.00    0.00       0
  NYMEX CRUDE      JAN3   87.34    -0.04   87.28   87.77    7686
                                                                                         
  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=3.06 ringgit)

 (Editing by Clarence Fernandez and Robert Birsel)
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