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VEGOILS-Palm oil edges up; weak Malaysia exports cap gains
March 1, 2012 / 5:46 AM / 6 years ago

VEGOILS-Palm oil edges up; weak Malaysia exports cap gains

 * Malaysian Feb exports fall around 10 pct
 * Palm oil to fall to 3,212 ringgit -technicals

 (Updates throughout)	
 By Chew Yee Kiat	
 SINGAPORE, March 1 (Reuters) - Malaysian crude palm
oil futures edged up on Thursday, spurred by positive factory
data from second-largest importer China but gains were capped as
export trends showed weaker demand.  	
 Malaysian export numbers eased in February, cutting palm oil
gains to 3.4 percent so far this year. Some market players
attributed the lower exports to a shift in orders to top
producer Indonesia, which slashed export taxes for refined
products.	
 "Exports are slightly negative because it suggests demand
remains relatively weak, but it could be because we have fewer
working days in February," said Ivy Ng, an analyst with
Malaysia's CIMB Investment Bank.	
 "It also may be because logistics have not been smooth due
to the holiday season. It could also imply that demand has been
shifting to Indonesia because of the favourable tax structure
there."	
 Benchmark May palm oil futures on the Bursa
Malaysia Derivatives Exchange gained 0.5 percent to close at
3,285 ringgit ($1,095) per tonne. 	
 Traded volumes stood at 20,170 lots of 25 tonnes each,
thinner than the usual 25,000 lots.	
 Malaysian palm oil exports for February eased 10.5 percent
from a month earlier , cargo surveyor Intertek Testing
Services said. Another cargo surveyor, Societe Generale de
Surveillance, reported a similar downward trend, saying exports
dropped 9.5 percent from January.  	
 Market players expect February stock levels to be flat or
end higher as exports seem to be slowing at a faster pace than
production in second-largest palm oil producer Malaysia.	
 Reuters technicals analyst Wang Tao said palm oil would fall
to 3,212 ringgit per tonne, as indicated by a Fibonacci
retracement. 	
 Oil rose above $123 a barrel on Thursday as signs of
economic growth in China and the United States bolstered the
demand outlook and concern persisted about supply disruption
from Iran. 	
 In other vegetable oil markets, the U.S. soyoil contract for
March delivery was flat in Asian trade and the most
active September 2012 soyoil contract on China's Dalian
Commodity exchange lost 1.1 percent.      	
  Palm, soy and crude oil prices at 1006 GMT
                                                                      
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      MAR2    3240   +15.00    3213    3255     157
  MY PALM OIL      APR2    3268   +23.00    3221    3268    1974
  MY PALM OIL      MAY2    3285   +15.00    3233    3285   12332
  CHINA PALM OLEIN SEP2    8298  -100.00    8296    8376  129632
  CHINA SOYOIL     SEP2    9336  -102.00    9332    9430  309694
  CBOT SOY OIL     MAY2   54.44    -0.03   54.10   54.50   10204
  NYMEX CRUDE      APR2  107.20    +0.13  106.55  107.37   16801
                                                                      
  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 www.pocmalaysia.com	
 	
($1=3.000 ringgit)	
	
 (Editing by Miral Fahmy)	
 

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