Business Times

4 September, 2010

MALAYSIAN crude palm oil futures closed more than 1 per cent higher yesterday on short-covering ahead of the Muslim festive season, but a firmer ringgit capped gains, a trader said.

Muslims worldwide will mark the end next week of the month-long Ramadan fasting period, when plantation workers in top palm oil producers, Indonesia and Malaysia, usually go on long holidays, triggering worries of tight supplies.

“There is some technical rebound in anticipation of a long holiday next week, and the delay of Malaysian Palm Oil Board data is not good news for the market too,” said a trader in Kuala Lumpur, referring to monthly palm oil figures released by the industry regulator.

The Malaysian Palm Oil Board yesterday said August’s palm oil production, stocks, exports and imports data will be released on September 15. Read the rest of this entry »

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Business Times

2 September, 2010

MALAYSIAN crude palm oil futures ended more than 1 per cent lower on yesterday, as players booked profits after data from cargo surveyors showed lacklustre overseas demand.

Malaysia’s August palm oil exports fell 17 per cent from a month ago, as the world’s No. 2 oil consumer China slowed buying due to ample stockpiles.

“There’s no sign for China to increase palm oil imports since there are still a lot of stocks in the country, but soybean demand could be higher when weather turns colder,” a trader with a Shanghai-based foreign brokerage said, adding that the country has about 450,000-500,000 tonnes of palm oil inventories at major ports.

However, some Malaysian traders are confident about the vegetable oil’s demand over the following month. Read the rest of this entry »

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Business Times

28 August, 2010

Crude Palm Oil (CPO) futures on Bursa Malaysia Derivatives are expected to remain rangebound next week due to the mixed sentiment in the market, dealers said.

Some traders anticipate prices to receive a boost from lower output in Malaysia and Indonesia as workers take a long break to celebrate the Hari Raya holiday amid strong demand.

“Market sentiment will also receive continuous support from an uptrend in crude oil prices,” a dealer said.

However, the dealer said, CPO prices will move in tandem with the firmer soyoil prices on the Chicago Board of Trade.

The dealer added market players are also concerned over the strengthening ringgit which will squeeze export margins and make the import of palm oil products less attractive. Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

25 August, 2010

Palm oil declined to the lowest level in a month on concern that inventory in Malaysia, the second-biggest grower, may climb as exports fall.

The November-delivery contract declined as much as 0.5 percent to 2,497 ringgit ($796) a metric ton on the Malaysia Derivatives Exchange, the lowest intraday level since July 30. Futures, down 8.4 percent from a 15-month high close on Aug. 9, ended the morning session at 2,501 ringgit.

“Exports don’t look promising and that may have some impact on the stockpiles,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. “External markets and a weaker crude oil are also not supportive for the market.” Read the rest of this entry »

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20 August, 2010

By Thomas Kutty Abraham

Aug. 20 (Bloomberg) — Palm oil futures had their biggest weekly decline in more than 10 months after rival soybean oil tumbled on expectation of a bigger U.S. crop and Asian importers slowed purchases.

November-delivery contract fell 2 percent to 2,544 ringgit ($810) a metric ton on the Malaysia Derivatives Exchange, the lowest price since July 30. The commodity slumped 6.4 percent this week, the most since the week ended Oct. 2.

“All the concerns about La Nina weather affecting the U.S. soybean crop haven’t materialized,” said Ben Santoso, an analyst at DBS Vickers (Singapore) Pte. in Singapore. “I don’t anticipate any major damage to the soybean crop and that may bring prices further down.”

The oilseed fell to the lowest level in two weeks yesterday after analysts touring the main growing areas in the U.S., the world’s top exporter, said the crops may be bigger than a year earlier. November-delivery futures fell 1.8 percent to close at $10.1225 a bushel on the Chicago Board of Trade yesterday. The oilseed lost 0.8 percent to $10.04 at 6:30 p.m. in Singapore, set for its first weekly decline in four weeks. Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

19 August, 2010

Palm oil fell for a fourth straight day to the lowest level in more than two weeks, tracking losses in rival soybean oil and on concern that inventory may climb on a seasonal jump in output.

November-delivery futures lost as much as 1.7 percent to 2,567 ringgit ($820) a metric ton on the Malaysia Derivatives Exchange, the lowest level since Aug. 3. The commodity, down 4 percent this week, ended the morning session at 2,582 ringgit.

“The main trigger for the weakness is the fall in soybeans and soybean oils in Chicago,” Veeresh Hiremath, an analyst at Karvy Comtrade Ltd. in Hyderabad, said by telephone. “There’s poor demand and higher inventory for soybean oil in the U.S.” Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

17 August, 2010

Palm oil futures fell for a second day to the lowest level in more than a week, hurt by losses in rival soybean oil and speculation that inventories may gain in Malaysia, the second-biggest grower.

November-delivery futures shed 1.2 percent to 2,646 ringgit ($837) a metric ton on the Malaysia Derivatives Exchange, the lowest level at close since Aug. 5. The November contract, which yesterday reached a record, fell 1.5 percent in intraday trading.

“Palm is being guided by external markets like soybeans,” said Ryan Long, a dealer at OSK Investment Bank Bhd. “It’s healthy to have a correction after the market ran up so much on weather concerns. The market seems to have fully priced in the weather premium.”

The tropical commodity has jumped almost 17 percent from an eight-month low on July 7 on concerns that excessive rains may reduce output in Indonesia and Malaysia, the two top producers, and dry weather may curb soybean yields in the U.S. Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

16 August, 2010

Palm oil climbed to the highest level in 16 months, extending the best winning run this year, on concern that heavy rainfall in Asia may hurt production and as rival soybean oil advanced.

October-delivery futures jumped as much as 1.4 percent to 2,756 ringgit ($866) a metric ton on the Malaysia Derivatives Exchange, the highest price since May 14, 2009. The commodity, which rose 2.1 percent last week to a fifth straight week of gains, traded at 2,733 ringgit at 12:26 p.m. in Kuala Lumpur.

“The weather-risk premium is pushing palm oil higher,” said James Ratnam, an analyst at TA Securities Holdings Bhd. “Some of the big plantation companies have been reporting weak production numbers and that’s raised supply concerns in the short term.” Read the rest of this entry »

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