VEGOILS-Palm oil inches up ahead of industry data
* Malaysia palm stocks to climb to 5-month high in July -survey
* Traders eye MPOB and USDA data on Friday for new cues
* Malaysia Aug 1-10 export data also due on Friday (Updates prices)
By Chew Yee Kiat
SINGAPORE, Aug 9 (Reuters) - Malaysian crude palm oil futures recovered a little on Thursday from a near 8-week low hit the previous day, although traders remained cautious ahead of a slew of key industry reports that could stir more market volatility.
The U.S. Department of Agriculture (USDA) will release its monthly supply and demand report on Friday that is likely to show a cut in estimates for new-crop soy output, potentially limiting edible oil supply and shifting some demand to palm oil.
Traders are looking out for the July stocks data from the Malaysian Palm Oil Board (MPOB), which is likely to have reached a five month high and could help shore up a deficit in global vegetable oil supply.
"(Palm oil) futures are a little bit oversold so we are expecting some technical pullback. But upside potential is very limited as long as Malaysian stocks remain on the high side," said a trader with a local commodities brokerage in Malaysia.
The benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange ended 0.1 percent higher at 2,865 ringgit ($923) per tonne. Prices touched a low of 2,854 ringgit on Wednesday, a level last seen on June 15.
Total traded volumes were thin at 20,741 lots of 25 tonnes each, compared to the usual 25,000 lots.
Malaysian palm oil stocks likely climbed in July to their highest since February as exports slow and production rises, snapping four straight months of declines, a Reuters survey showed on Wednesday.
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will release exports data for the Aug 1-10 period also on Friday.
Palm oil exports suffered a double-digit decline in July as festival demand eased, cargo surveyor data showed. Traders are now pinning their hopes on the recently announced tax-free crude palm oil export quotas of 2 million tonnes to help reduce stocks in coming months.
The industry is also watching out for a possibility of El Nino returning to Southeast Asia, as the hot and dry weather pattern could damage palm oil yields for top producers Indonesia and Malaysia.
Oil prices steadied around $112 a barrel on Thursday as sobering production and consumption data from China weighed on the demand outlook, but prices remained elevated due to supply disruptions in the Gulf of Mexico and lower Brent output.
Other vegetable oil markets traded higher ahead of the USDA report on Friday.
By 1004 GMT, the most active U.S. soyoil contract for December delivery had edged up 0.5 percent and the most active January 2013 soyoil contract on the Dalian Commodity Exchange jumped 1.4 percent.
Palm and soy oil prices at 1005 GMT
Contract Month Last Change Low High Volume MY PALM OIL AUG2 0 +0.00 0 0 0 MY PALM OIL SEP2 2827 +6.00 2820 2851 892 MY PALM OIL OCT2 2865 +2.00 2860 2894 14220 CHINA PALM OLEIN JAN3 7854 +80.00 7778 7860 236606 CHINA SOYOIL JAN3 9696 +130.00 9572 9706 737660 CBOT SOY OIL DEC2 52.65 +0.26 52.30 52.94 8236
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
($1=3.104 Malaysian ringgit) (Editing by Niluksi Koswanage)
- Tweet this
- Share this
- Digg this
- Sweden says credible reports of foreign submarine in its waters
- EU's Barroso to Britain - Don't alienate your friends in Europe
- Lufthansa cancels flights due to pilots strike; train stoppage strands millions |
- Tesco accounting probe finds 'inappropriate behaviour' by staff - reports
- HSBC fall weighs on FTSE as rebound loses steam