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VEGOILS-Palm oil eases on weak exports, firm ringgit
May 14, 2013 / 10:16 AM / 4 years ago

VEGOILS-Palm oil eases on weak exports, firm ringgit

* Malaysia palm exports for May 1-15 due on Wednesday
    * Palm oil neutral in 2,295-2,335 ringgit range -technicals
    * India palm oil imports down for third straight month in
April

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, May 14 (Reuters) - Malaysian palm oil futures
edged lower on Tuesday, dropping for a second straight session
as worries about weak exports and a firm ringgit kept investors
on the sidelines.
    Malaysian palm oil exports fell 16.7 percent in the first 10
days of the month from the same period a month ago, weighed by
slowing demand from Europe and China, said cargo surveyor
Intertek Testing Services. 
    Another surveyor Societe Generale de Surveillance reported a
steeper 18.4 percent drop. 
    "There are two main reasons the market is down today: a
strong ringgit and the weak exports figure. Support level is at
2,280 ringgit," said a trader with a foreign commodities
brokerage in Kuala Lumpur. 
    A firmer ringgit, which rose about 0.3 percent
against the dollar on Tuesday, makes the feedstock more
expensive for overseas buyers and refiners.
    At market close, the benchmark July contract on the
Bursa Malaysia Derivatives Exchange was down 0.4 percent at
2,301 ringgit ($770) per tonne, after trading between 2,291 and
2,327 ringgit. 
    Total traded volumes stood at 26,482 lots of 25 tonnes each,
lower than the average 35,000 lots.    
    Technicals showed palm oil looks neutral in a range of 2,295
 to 2,335 ringgit per tonne, and an escape will point a future
direction, said Reuters market analyst Wang Tao. 
    Malaysian palm oil stocks eased 11.3 percent in April, due
to a combination of stagnant production growth and
higher-than-expected exports and local consumption.
 
    The market is now waiting for Malaysia's palm exports data
for the May 1-15 period due Wednesday to gauge demand.      
    India's palm oil imports declined for a third straight month
in April, Mumbai trade body the Solvent Extractors' Association
said on Tuesday, as refiners in the world's biggest buyer used
stocks and processed the new rapeseed harvest. 
    In other markets, Brent crude slipped below $103 per barrel
on Tuesday, caught between hopes of a revival in global economic
growth and worries over demand after bearish reports from the
West's energy watchdog. 
    In vegetable oil markets, U.S. soyoil for July delivery
 fell 0.3 percent in late Asian trade. The most-active
September soybean oil contract on the Dalian Commodities
Exchange closed 0.1 percent lower.         
  Palm, soy and crude oil prices at 1002 GMT
                                                                   
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      MAY3       0    +0.00       0       0       0
  MY PALM OIL      JUN3    2294    -2.00    2284    2307     577
  MY PALM OIL      JUL3    2301    -9.00    2291    2327   12397
  CHINA PALM OLEIN SEP3    6110   -22.00    6096    6176  496924
  CHINA SOYOIL     SEP3    7494   -10.00    7482    7572  838286
  CBOT SOY OIL     JUL3   49.47    -0.14   49.40   49.80    4538
  NYMEX CRUDE      JUN3   95.02    -0.15   94.90   95.66   19275
                                                                   
  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=2.98 ringgit)

 (Editing by Richard Pullin and Himani Sarkar)

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