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VEGOILS-Palm oil gains on hopes stocks will ease; output eyed
July 3, 2013 / 10:21 AM / 4 years ago

VEGOILS-Palm oil gains on hopes stocks will ease; output eyed

* Investors eye MPOB stocks, cargo surveyor exports data
next week
    * Prices trade between 2,342-2,372 ringgit
    * May briefly touch 2,330 ringgit before rebound -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, July 3 (Reuters) - Malaysian palm oil futures
edged up on Wednesday amid hopes stocks could have dropped in
June, but gains were limited by concerns about rising output in
the world's No.2 producer. 
    Rising exports could ease stocks further from May's 1.82
million tonnes, the lowest in nearly a year, but some traders
said increasing production could limit the fall.    
    "We need to see the production number, which could rise
around 8-9 percent. Stocks could range around 1.75-1.78 million
tonnes. The market is just mostly in a wait-and-see mode now,"
said a dealer with a foreign commodities brokerage in Kuala
    Industry regulator the Malaysian Palm Oil Board will release
official stocks data next week.
    The benchmark September contract on the Bursa
Malaysia Derivatives Exchange gained 1.1 percent to close at
2,365 ringgit ($743) per tonne on Wednesday, snapping five
straight sessions of losses. 
    Total traded volumes stood at 36,758 lots of 25 tonnes each,
higher than the average 35,000 lots. Prices moved in a 2,342 to
2,372 ringgit range.
    Technicals show palm oil may briefly touch or pierce below a
support of 2,330 ringgit before rebounding towards 2,391
ringgit, Reuters market analyst Wang Tao said. 
    Malaysian palm oil shipments in June rose 5-7 percent from a
month ago, as purchases spiked ahead of the Muslim holy month of
Ramadan that starts next week, cargo surveyor data showed.
    Cargo surveyors will report exports data for the first 10
days of July next week. Shipments are expected to rise on
last-minute buying before Ramadan. Consumption of the edible oil
typically rises during the holy month as Muslims gather for
communal feasts to break their fast.
    In other markets, oil surged on Wednesday on a sharp decline
in crude stockpiles in top consumer the United States and
political unrest in Egypt that could destabilise the Middle East
and lead to supply disruptions.     
    In vegetable oil markets, U.S. soyoil for December 
edged up 0.6 percent in late Asian trade. The most-active
January soybean oil contract on the Dalian Commodities
Exchange fell 0.7 percent.        
  Palm, soy and crude oil prices at 1005 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUL3       0    +0.00       0    2350       0
  MY PALM OIL      AUG3    2367   +25.00    2346    2373    3590
  MY PALM OIL      SEP3    2365   +26.00    2342    2372   16338
  CHINA PALM OLEIN JAN4    5888    -8.00    5878    5918  313970
  CHINA SOYOIL     JAN4    7322   -52.00    7312    7384  593888
  CBOT SOY OIL     DEC3   45.88    +0.26   45.55   45.90    4847
  NYMEX CRUDE      AUG3  101.04    +1.44   99.59  102.18   65862
  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=3.18 ringgit)

 (Editing by Himani Sarkar)

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