* Latest Malaysian data pointing to record stocks negative
* Traders hoping for higher shipments on quota, Chinese
By Chew Yee Kiat
SINGAPORE, Dec 11 Malaysian palm oil futures
ended lower on Tuesday, as traders priced in record stocks in
the world's second-largest producer of the edible oil.
Malaysia's palm oil inventory level climbed for the fourth
straight month to a record 2.56 million tonnes in November,
weighing on futures that were headed for the worst annual
performance since the 2008 financial crisis.
"We view the latest inventory data negatively as high stocks
should keep crude palm oil prices at distressed levels of below
2,500 ringgit per tonne for an extended period well into 2013,"
Alan Lim Seong Chun, research analyst with Malaysia's Kenanga
Investment Bank, said in a note to clients.
The benchmark February contract on the Bursa
Malaysia Derivatives Exchange lost 0.9 percent to close at 2,292
ringgit ($750) per tonne. Prices traded in a range of 2,283 to
Total traded volumes stood at 38,386 lots of 25 tonnes each,
much higher than the usual 25,000 lots.
On the weather front, an absence of El Nino disrupting
production could lead to even higher palm oil supplies and pile
more pressure on record high stocks, while the latest export
data also failed to lift investor sentiment.
Malaysian exports fell 2.8 percent for the first 10 days of
December from a month ago, said cargo surveyor Intertek Testing
Services. Another cargo surveyor, Societe Generale de
Surveillance, reported a 0.4 percent rise for the same period.
But traders are hoping for higher shipments in the next few
weeks as planters rush to finish their annual tax-free export
quota that expires the end of December and as Chinese buyers
stock up before the implementation of a stricter quality
requirement on edible oil from next year.
In a bullish sign for palm oil, Brent crude oil rose to
around $108 a barrel on Tuesday as a slightly weaker dollar and
Middle East unrest supported prices, but stalled fiscal talks in
the United States capped gains.
In other vegetable oil markets, U.S. soyoil for January
delivery fell 0.3 percent in late Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed 0.1 percent lower.
Palm, soy and crude oil prices at 1009 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC2 2105 -16.00 2105 2110 27
MY PALM OIL JAN3 2190 -31.00 2185 2230 2110
MY PALM OIL FEB3 2292 -21.00 2283 2324 12647
CHINA PALM OLEIN MAY3 6788 -70.00 6788 6896 823078
CHINA SOYOIL MAY3 8740 -12.00 8740 8834 547628
CBOT SOY OIL JAN3 50.99 -0.15 50.91 51.26 5173
NYMEX CRUDE JAN3 85.89 +0.33 85.37 85.92 14826
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 Malaysian ringgit)
(Editing by Miral Fahmy and Jonathan Thatcher)