VEGOILS-Palm oil rises to 1-month high on export hopes

Fri Mar 22, 2013 6:16am EDT

Related Topics

* Palm to get near-term support from low output -Mistry
    * Intraday prices highest since Feb. 22 at 2,503 ringgit
    * March's end-stocks could dip below 2.35 mln T -trader

 (Updates prices, details)
    By Anuradha Raghu
    KUALA LUMPUR, March 22 (Reuters) - Malaysian palm oil
futures rose to their highest in a month on Friday and posted a
3.3 percent weekly gain as hopes of export demand whittling down
stocks offset uncertainty in Europe.    
     Data this week has lifted expectations of market
participants that exports of palm oil will climb and help ease
the 2.44-million-tonne stock buildup in Malaysia, the world's
No.2 producer of the edible oil.  
    "Exports in March should be much better than February's.
With exports up and production going down, end-stocks in March
could go below 2.35 million tonnes," said a trader with a
foreign commodities brokerage in Kuala Lumpur.
    The market was also supported by leading analyst Dorab
Mistry's projection that palm oil futures could trade between
2,400 and 2,700 ringgit per tonne by the end of May, an upward
revision from his previous forecast.            
             
    The benchmark June contract on the Bursa Malaysia
Derivatives Exchange gained 1.6 percent to close at 2,494
ringgit ($802) per tonne, off an earlier high of 2,503 ringgit,
the highest level since Feb. 22.
    Total traded volume stood at 43,725 lots of 25 tonnes each,
higher than the usual 25,000 lots.    
    Also playing on general market sentiment were concerns about
a possible debt default by Cyprus, which could hit the euro
zone's fragile recovery and crimp edible oil demand. 
    But for the week, palm oil futures still posted a 3.3
percent gain as a rise in exports offset caution over
macroeconomic uncertainty.
    Traders will be looking out for the next export data due on
Monday as they say demand needs to pick up faster to bring
stockpiles to comfortable levels. Record stocks last year had
dragged prices down more than 20 percent, palm's worst
performance since the 2008 global financial crisis.    
    In other markets, Brent crude held above $107 a barrel, but
was still on track for a second straight week of losses, as
Cyprus scrambled to raise money to avert a financial meltdown
that could disrupt the euro zone's recovery and diminish its oil
demand. 
    In other vegetable oil markets, U.S. soyoil for May delivery
 was almost flat in late Asian trade. The most-active
September soybean oil contract on the Dalian Commodities
Exchange inched down 1 percent.    
    
  Palm, soy and crude oil prices at 1007 GMT
                                                                                               
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR3    2462   +26.00    2430    2470     331
  MY PALM OIL      MAY3    2483   +34.00    2447    2493    4556
  MY PALM OIL      JUN3    2494   +38.00    2457    2503   21259
  CHINA PALM OLEIN SEP3    6386   -40.00    6370    6448  434108
  CHINA SOYOIL     SEP3    8082   -78.00    8080    8172  584072
  CBOT SOY OIL     MAY3   50.44    +0.02   50.18   50.50    5171
  NYMEX CRUDE      MAY3   92.67    +0.22   92.33   92.74   12503
                                                                                               
  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=3.11 ringgit)    

 (Editing by Muralikumar Anantharaman and Himani Sarkar)
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