January 25, 2013 / 6:17 AM / in 5 years

VEGOILS-Palm oil falls on weak exports, posts weekly gain

* Malaysia's Jan 1-25 palm exports down 14.1 pct -ITS
    * Shipments down 14.6 pct for same period -SGS
    * Prices post weekly gain of 1.9 pct
    * India raises base import price of crude palm oil
    * Palm oil to seek support at 2,449 ringgit -technicals

 (Updates prices, adds SGS exports data)
    By Chew Yee Kiat
    SINGAPORE, Jan 25 (Reuters) - Malaysian palm oil futures
fell on Friday, snapping four straight sessions of gains, as
weak exports and a move by India to raise its base import price
of crude palm oil prompted traders to book profits.      
    Exports of Malaysian palm oil products for Jan. 1-25 fell 14
percent to 1,102,585 tonnes from 1,283,704 tonnes in the Dec.
1-25 period, cargo surveyor Intertek Testing Services said on
Friday. 
    Another cargo surveyor Societe Generale de Surveillance
reported a 14.6 percent decline in shipments to 1,104,890 tonnes
for the same period. 
    India's move to raise the base import price of crude palm
oil by nearly 80 percent also stoked concerns it could
neutralise export duty cuts by major producers Indonesia and
Malaysia, although analysts said that its effect may be more
pronounced in the long run. 
    "We are neutral on the news, as the crude palm oil price
should have priced this in previously. However, in the long run
the new rule may prompt Indian refineries to use local crude
palm oil first before importing from Malaysia and Indonesia,"
said Alan Lim Seong Chun, research analyst with Malaysia's
Kenanga Investment Bank. 
    "Our major concern is still on Malaysia's inventory, which
we think will reach another record high of 2.66 million tonnes
by end-January. This should limit price upside."
    India is the world's biggest importer of edible oils.
    The benchmark April contract on the Bursa Malaysia
Derivatives Exchange lost 1.5 percent to close at 2,445 ringgit
($803) per tonne. 
    Total traded volumes stood at 31,360 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    For the week, palm oil still posted a gain of 1.9 percent,
on concerns that dry weather in South America could hurt soybean
and soybean oil production, shifting some demand to the cheaper
palm oil.    
    Technical analysis shows palm oil is likely to seek support
at 2,449 ringgit and rise again to test resistance at 2,486
ringgit, said Reuters market analyst Wang Tao. 
    Despite seasonally lower production, market participants
still fear that Malaysian palm oil stocks that hit a record 2.63
million tonnes in December could climb higher this month due to
weak exports.
    Shipments to major consumer China fell amid high port stocks
and as the stricter quality rule on edible oil imports prompted
some exporters to hold back shipments. European demand also
plunged more than 50 percent on seasonal factors.
    Brent crude held above $113 on Friday, on track to post a
second week of gains as robust economic data from the United
States and China lifted the outlook for fuel demand in the
world's two largest oil consumers. 
    In competing vegetable oil markets, U.S. soyoil for March
delivery lost 0.1 percent in late Asian trade. The most
active May soybean oil contract on the Dalian Commodity
Exchange closed 0.1 percent lower.         
  Palm, soy and crude oil prices at 1004 GMT
                                                                    
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      FEB3    2383   -27.00    2370    2383     237
  MY PALM OIL      MAR3    2413   -40.00    2409    2436    4414
  MY PALM OIL      APR3    2445   -36.00    2442    2467   15270
  CHINA PALM OLEIN SEP3    7024   -24.00    7024    7076  295796
  CHINA SOYOIL     SEP3    8736   +10.00    8716    8760  362954
  CBOT SOY OIL     MAR3   52.03    -0.07   51.94   52.37    4590
  NYMEX CRUDE      MAR3   96.27    +0.32   95.75   96.36   12412
                                                                    
  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=3.043 ringgit)

 (Editing by Clarence Fernandez and Miral Fahmy)

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