Reuters logo
VEGOILS-Palm oil ends higher on stocks, euro zone hopes
November 26, 2012 / 5:40 AM / in 5 years

VEGOILS-Palm oil ends higher on stocks, euro zone hopes

* Exports for Nov. 1-25 inches down 1.8 pct -ITS
    * Exports for same period down 1.9 pct -SGS
    * Palm oil to rise to 2,485 ringgit -technicals

 (Updates prices, adds SGS export data)
    By Anuradha Raghu
    KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil futures
edged up on Monday on expectations stocks might grow at a slower
pace, with the market also focusing on Greek financial aid deal
set to be signed later in the day that may cheer markets. 
    Cargo surveyor data showed Malaysian exports declined at a
much slower pace, easing pressure on stockbuild and supporting
palm oil prices that have fallen 23 percent so far this year on
roiling financial markets.   
    "If exports maintain their two percent drop for the full
month, it means that although inventory levels are poised to go
higher, it may be growing at a slower rate than expected," said
Kenanga Investment Bank analyst Alan Lim.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange rose 1.5 percent to close at 2,432
ringgit ($796) per tonne. 
    Total traded volumes stood at 30,722 lots of 25 tonnes each,
higher than the usual 25,000 lots.  
    Technicals showed that a new bullish target of 2,485 ringgit
per tonne has been established, aborting its more bearish 2,321
ringgit target previously, said Reuters market analyst Wang Tao.
    Cargo surveyor Intertek Testing Services said palm oil
exports in Nov. 1-25 fell 1.8 percent to 1,276,792 tonnes from a
month ago, showing slight improvement from a 3.3 percent drop in
the first twenty days of this month. 
    Another cargo surveyor, Societe Generale de Surveillance,
reported a similar 1.9 percent drop for the same period.
    The market expects weaker palm oil prices in October and
November to stimulate demand from price-sensitive countries such
as India and Pakistan, translating to higher exports in the
weeks to come.
    Financial markets across the world were generally optimistic
about a euro zone finance ministers meeting on Monday which is
pushing for international lenders to release emergency aid and
stem the region's debt crisis. 
    Brent crude oil steadied around $111 a barrel on Monday as
violent protests in Egypt raised new worries over the stability
of the Middle East, reigniting supply concerns. 
    U.S. soyoil for December delivery inched up 0.5
percent in late Asian hours, resuming trade after Thanksgiving
holidays. The most-active May 2013 soybean oil contract 
on the Dalian Commodity Exchange closed 1.1 percent higher. 
  Palm, soy and crude oil prices at 1005 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2265    -2.00    2240    2284     574
  MY PALM OIL      JAN3    2385   +30.00    2357    2392    5034
  MY PALM OIL      FEB3    2432   +37.00    2398    2438   17648
  CHINA PALM OLEIN MAY3    6816  +112.00    6766    6836  582850
  CHINA SOYOIL     MAY3    8602   +92.00    8578    8626  519198
  CBOT SOY OIL     DEC2   49.30    +0.26   48.95   49.50    5756
  NYMEX CRUDE      JAN3   87.73    -0.55   87.67   88.29   13919
  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=3.054 ringgit)

 (Additional reporting by Chew Yee Kiat; Editing by Niluksi
Koswanage and Miral Fahmy)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below