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VEGOILS-Palm oil inches down on bearish U.S. crop report
February 10, 2012 / 5:16 AM / in 6 years

VEGOILS-Palm oil inches down on bearish U.S. crop report

* Palm oil to retrace further to 3,084 ringgit -technicals
    * Malaysia's palm oil exports for Feb. 1-10 fell 7.7 pct
    * Malaysia's Jan palm oil stocks down 2.5 pct -MPOB
    * Malaysia's palm oil exports for Feb. 1-10 down 4.3 pct

 (Updates prices, adds SGS export data)	
    By Chew Yee Kiat	
    SINGAPORE, Feb 10 (Reuters) - Malaysian crude palm oil
fell on Friday on the back of a bearish U.S. crop report and
prospects of slowing demand, although losses were capped by a
long-awaited bailout deal for Greece which has yet to be
    The U.S Department of Agriculture on Thursday forecast
larger-than-expected soybean supplies in its monthly report even
as a severe drought curbed yields in Brazil and Argentina,
putting pressure on palm oil prices, which track soybean oil
    "The market's a little bearish because it expects a steeper
production drop in the South American crop," said a dealer with
a foreign commodities brokerage in Kuala Lumpur.	
    "However, the low production season in the first quarter and
improving demand from China and India should support crude palm
oil prices in the range of 3,000 to 3,200 ringgit in the near
term," added the dealer.	
    Benchmark April palm oil futures on the Bursa
Malaysia Derivatives Exchange lost 0.5 percent to close at 3,131
ringgit ($1,034) per tonne. The futures market has lost 1.4
percent so far this year. 	
    Traded volumes were thin at 22,375 lots of 25 tonnes each,
compared to the usual 25,000 lots.	
    Reuters market analyst Wang Tao said palm oil futures will
retrace further to 3,084 ringgit per tonne as they have
completed a rebound from the Feb. 2 low of 3,036 ringgit.
    Malaysia's January palm oil stocks fell 2.5 percent to
2,007,967 tonnes from a revised 2,058,400 tonnes in December,
industry regulator Malaysian Palm Oil Board said on Friday, in
line with market expectations. 	
    A Reuters survey of six plantation houses earlier showed
Malaysia's palm oil stocks in January probably fell to a
five-month low to nearly 2 million tonnes as a drop in exports
outran a fall in production.     	
    On the demand side, cargo surveyor Intertek Testing Services
said Malaysian palm oil exports from Feb. 1 to 10 fell 7.7
percent to 342,982 tonnes from a month ago. 	
    Another cargo surveyor Societe Generale de Surveillance said
palm oil exports for the same period dropped 4.3 percent to
337,618 tonnes. 	
    Some traders attributed the decline in exports to the shift
in orders to top producer Indonesia which is selling at a
discount due to its tax structure.	
    Brent crude slipped from a six-month high to below $118 a
barrel on Friday as data from China showed a soaring trade
surplus due to crumbling imports for January, stoking fears of a
slowdown in demand from the world's second largest oil consumer.
    The U.S. soyoil contract for March delivery slipped
0.3 percent in Asian trade on the back of the bearish USDA
report while the most active September 2012 soyoil contract
 on China's Dalian Commodity exchange also fell 0.7
  Palm, soy and crude oil prices at 1002 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      FEB2       0    +0.00       0       0       0
  MY PALM OIL      MAR2    3141    -4.00    3117    3141    2029
  MY PALM OIL      APR2    3131   -17.00    3118    3142   11384
  CHINA PALM OLEIN SEP2    8190   -48.00    8176    8234   82294
  CHINA SOYOIL     SEP2    9220   -60.00    9202    9268  247782
  CBOT SOY OIL     MAR2   52.37    -0.17   52.12   52.61    4850
  NYMEX CRUDE      MAR2   99.07    -0.76   99.03   99.89   14683
  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
 * Bursa Malaysia holds its annual Palm and Lauric Oils
Conference & Exhibition Price Outlook 2012 from March 5 to 7 in
Kuala Lumpur. For details, see	
($1=3.0280 Malaysian ringgit)	
 (Editing by Miral Fahmy)

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