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VEGOILS-Palm inches up as lower stock hopes offset weak soy markets
April 3, 2013 / 10:26 AM / in 5 years

VEGOILS-Palm inches up as lower stock hopes offset weak soy markets

* Brazil soy shipments likely to increase as congestion
eases -Oil World
    * Market expected to be rangebound between 2,350-2,400
ringgit -trader
    * Palm oil to revisit low of 2,335 ringgit -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, April 3 (Reuters) - Malaysian palm oil futures
ended higher on Wednesday as expectations of lower palm oil
stocks offset weak overseas soy markets.
    Soybean prices have lost 1 percent so far this week and
could face further pressure as port congestion in Brazil started
to ease and the country's shipments are likely to increase in
coming weeks, Hamburg-based oilseeds analysts Oil World said.
    A higher supply of soybeans to be crushed into vegetable oil
could shift some demand away from competing palm oil. 
    But market participants remain hopeful for prices to be
supported by an easing in Malaysia's March palm oil inventory,
following lower production and improving export data.  
    By market close, the benchmark June contract on the
Bursa Malaysia Derivatives Exchange had edged up 0.6 percent to
2,396 ringgit ($778) per tonne. Prices fell as low as 2,335
ringgit on Monday, the lowest in almost three months.
    "The market should still be trading in a range between 2,350
and 2,400 ringgit. Today it opened lower because of the weaker
soy markets," said a trader with a foreign commodities brokerage
in Malaysia. "On the local front it's still supportive, as
production and stocks are expected to be lower."     
    Total traded volume stood at 31,672 lots of 25 tonnes each,
slightly lower than the average 35,000 lots seen this year.
    Technical analysis showed palm oil is expected to revisit
its Monday low of 2,335 ringgit, as it may have completed a
rebound from this level, said Reuters market analyst Wang Tao.
    Cargo surveyor data showed better exports in March than
February, marking the first monthly rise in four months, boosted
by higher shipments of refined products.    
    Malaysia's stock market lost more than 3 percent in
early Wednesday trade following Prime Minister Najib Razak's
announcement that paved the way for a long-anticipated general
election, but traders said it should not have the same impact on
palm oil futures.        
    In other markets, Brent crude oil slid towards $110 a barrel
on Wednesday as oil stockpiles swelled in top oil consumer the
United States, where a struggling economy is limiting demand for
    In vegetable oil markets, U.S. soyoil for May delivery
 edged up 0.1 percent in early Asian trade. The most
active September soybean oil contract on the Dalian
Commodities Exchange inched up 0.2 percent.    
  Palm, soy and crude oil prices at 1005 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR3    2337   -20.00    2334    2355       2
  MY PALM OIL      MAY3    2387   +13.00    2344    2388    1471
  MY PALM OIL      JUN3    2396   +14.00    2350    2397   13863
  CHINA PALM OLEIN SEP3    6216   +54.00    6166    6300  851898
  CHINA SOYOIL     SEP3    7858   +12.00    7802    7914  708660
  CBOT SOY OIL     MAY3   49.66    +0.07   49.39   49.82    7682
  NYMEX CRUDE      MAY3   96.79    -0.40   96.51   96.96   12691
  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=3.08 ringgit)   

 (Editing by Clarence Fernandez and Muralikumar Anantharaman)

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