VEGOILS-Palm oil slips as slowing exports weigh
* Malaysia's March 1-25 palm exports down 7 pct -SGS * Cyprus's last-ditch deal helps limit losses * Stocks may fall to 2.27 million tonnes in April -analyst (Updates prices, adds details) By Chew Yee Kiat SINGAPORE, March 25 (Reuters) - Malaysian palm oil futures fell on Monday on weaker exports, although losses were limited as a last-ditch deal to bailout Cyprus supported investor appetite for riskier assets. Cyprus clinched a deal with international lenders for a 10 billion euro ($13 billion) bailout, sending global markets including crude oil and the euro higher. But palm oil came under pressure as Malaysian exports fell to 1,055,914 tonnes in the first 25 days of the month, a 7 percent slide compared to the same period last month. Data from cargo surveyors also showed a slowdown of shipments to major edible oil buyers India, the United States and the European Union. "We saw a drop in exports to India ... Indian buyers last month did not book that many shipments for March in advance on uncertainty of the tax change," said a Singapore-based trader with a global commodities house. Indian buyers avoided booking cargoes for March in advance as they expected the government to use its budget in late February to announce a hike in import tariffs, although that did not materialise. The benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 1.3 percent to 2,460 ringgit ($794) per tonne by Monday's close. Intraday prices touched a high of 2,505 ringgit, the highest level since Feb. 22, but failed to rally. Total traded volume stood at 35,577 lots of 25 tonnes each, much higher than the usual 25,000 lots. Leading analyst Dorab Mistry has forecast palm oil futures could trade between 2,400 and 2,700 ringgit per tonne by the end of May due to lower stocks and output, an upward revision from his previous forecast. He also expects Malaysian palm oil stocks to drop below 2 million tonnes in June. "We generally agree with Dorab Mistry's short-term view ... However, we do not think Malaysia palm oil inventory will reach 2 million tonnes as we believe it should reach the lowest level of 2.27 million tonnes by April 2013," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients. Palm oil stocks in Malaysia, the world's second-largest palm producer, stood at 2.44 million tonnes in end-February and traders are counting on seasonally slower production and healthy demand to bring stocks down. In other markets, Brent rose above $108 on Monday, as hopes brightened for a revival in demand after euro zone ministers approved an EU-IMF plan for restructuring Cyprus's banking sector, averting a worsening crisis for the region. In other vegetable oil markets, U.S. soyoil for May delivery edged down 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.2 percent. Palm, soy and crude oil prices at 1004 GMT Contract Month Last Change Low High Volume MY PALM OIL APR3 2428 -32.00 2425 2456 418 MY PALM OIL MAY3 2457 -28.00 2453 2496 5188 MY PALM OIL JUN3 2460 -33.00 2459 2505 19049 CHINA PALM OLEIN SEP3 6416 +10.00 6402 6478 436712 CHINA SOYOIL SEP3 8100 -12.00 8084 8144 444946 CBOT SOY OIL MAY3 50.27 -0.16 50.21 50.51 3720 NYMEX CRUDE MAY3 94.15 +0.44 93.70 94.25 14817 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=3.099 ringgit) (Editing by Himani Sarkar)
- White House reverses, says Obama met uncle and lived with him during law school
- With song and sadness, South Africans mourn Mandela |
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- U.S. television, Twitter, alive with new version of 'Sound of Music'
- UPDATE 1-Study casts doubt on whether extra vitamin D prevents disease