VEGOILS-Palm oil up on slower stocks growth, higher exports

Mon Dec 10, 2012 5:05am EST

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(releads)
    * Dec 1-10 palm oil exports firm-cargo surveyors
    * Stocks up at a slower pace of 2.3 pct, hits record at 2.56
mln tonnes -MPOB

    By Anuradha Raghu
    KUALA LUMPUR, Dec 10 (Reuters) - Malaysian palm oil futures
inched up on Monday as slower-than-expected growth in stocks
last month and firm export demand in the first ten days of
December lifted sentiment.
    Traders are expecting stronger export demand in the days to
come, potentially cutting into record stocks notched in November
and supporting benchmark palm oil futures that have fallen xx
percent this year.
    This decline marks the worst annual performance for palm oil
futures since the financial crisis in 2008 although traders said
this provides a massive buying opportunity for the edible oil
that trades at a $350 discount to competing Argentine soyoil.
    "We could see an upward swing in prices this week. The
market will be pricing in more positive sentiment," said a
trader with a foreign commodities brokerage in Kuala Lumpur.
    Benchmark February contract on the Bursa Malaysia
Derivatives Exchange settled up 0.7 percent to 2,313 ringgit
($760) per tonne. Total traded volumes rose to 35,330 lots of 25
tonnes each, higher than the usual 25,000 lots. 
    Data from the Malaysian Palm Oil Board showed that
November's inventory level rose 2.3 percent to a record 2.56
million tonnes from the previous month. Stocks grew at a weaker
than expected pace, giving support to prices during afternoon
trade. 
    Firm exports also gave support. Cargo surveyor Societe
Generale de Surveillance said Malaysian exports for Dec 1-10
rose 0.4 percent to 516,841 tonnes from 514,798 tonnes shipped
during Nov 1-10. 
    Investors are banking on higher shipments in the next few
weeks as planters rush to finish their annual tax free export
quota allocation of 3.5 million tonnes which expires end of
December.
    Brent crude oil rose above $107 a barrel on Monday, snapping
five straight days of losses after Chinese data showed the
world's biggest energy consumer was rebounding after a slowdown.
 
    In palm oil's competing markets, U.S. soyoil for January
delivery fell 0.3 percent. The most active May 2013
soybean oil contract on the Dalian Commodity Exchange
ended almost flat. 

  Palm, soy and crude oil prices at 1003 GMT
                                                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2125   +14.00    2120    2125      10
  MY PALM OIL      JAN3    2223   +12.00    2205    2230    3017
  MY PALM OIL      FEB3    2313   +16.00    2288    2317   15582
  CHINA PALM OLEIN MAY3    6860   +38.00    6802    6900  522018
  CHINA SOYOIL     MAY3    8752    +2.00    8722    8788  379386
  CBOT SOY OIL     JAN3   50.90    -0.23   50.78   51.21    5492
  NYMEX CRUDE      JAN3   86.30    +0.37   85.90   86.49   12304
                                                                                                     
  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 = 3.0555 Malaysian ringgit)

 (Editing by Niluksi Koswanage)
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