United Kingdom

Emily Chow

VEGOILS-Palm hits one-week low as high stocks worries persist

23 Apr 2019

* Market charts second day of losses * April output expected to see monthly gains - trader * Palm oil biased to fall towards 2,110 rgt/T - techs (Updates with closing prices) By Emily Chow KUALA LUMPUR, April 23 Malaysian palm oil futures fell to their lowest in a week on Tuesday, their second straight day of losses as concerns persisted over high inventory levels in the world's second largest producer. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 0.1 percent at 2,170 ringgit ($526.06) a tonne, after earlier hitting 2,152 ringgit, its lowest since April 16. Palm oil is biased towards breaking support at 2,155 ringgit per tonne and falling towards next support at 2,110 ringgit, following its failure to break a resistance at 2,227 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. "Production is not coming down, and demand has not been so great. There is a worry that end-stocks are not reducing," said a futures trader in Kuala Lumpur. He added that palm oil production throughout Malaysia so far this month was showing a monthly gain of 2-5 percent. Higher output levels would contribute towards a rise in stockpiles, which last year hit their highest in at least 18 years. Inventories last declined 4.6 percent to 2.92 million tonnes at the end of March, while production rose to 1.67 million tonnes, up 8.3 percent from February. Data from cargo surveyors Societe Generale de Surveillance and Intertek Testing Services showed export gains of 1.5-2.2 percent for April 1-20. Independent inspection company AmSpec Agri Malaysia, however, reported a 1.8 percent drop for the same period. In other related oils, the Chicago May soybean oil contract fell 0.1 percent, and the May soyoil contract on the Dalian Commodity Exchange was down 0.2 percent. Meanwhile, the Dalian May palm oil contract declined 1.1 percent. Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market. Palm, soy and crude oil prices at 1052 GMT Contract Month Last Change Low High Volume MY PALM OIL MAY9 2075 -11.00 2066 2080 183 MY PALM OIL JUN9 2152 -2.00 2133 2154 5466 MY PALM OIL JUL9 2170 -2.00 2152 2174 14952 CHINA PALM OLEIN MAY9 4358 -50.00 4338 4396 39986 CHINA SOYOIL MAY9 5330 -12.00 5304 5354 40922 CBOT SOY OIL MAY9 28.67 -0.03 28.54 28.75 4803 INDIA PALM OIL APR9 539.70 -2.40 536.50 541 521 INDIA SOYOIL MAY9 739 +2.70 734.15 739.8 16070 NYMEX CRUDE JUN9 65.99 +0.44 65.71 66.19 124304 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 India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel ($1 = 4.1250 ringgit) ($1 = 6.7126 Chinese yuan) ($1 = 69.7050 Indian rupees) (Reporting by Emily Chow; Editing by Uttaresh.V and Mark Potter)

Palm oil in line for weekly gain on stronger U.S. soyoil

19 Apr 2019

KUALA LUMPUR Malaysian palm oil futures rose during the first half of trade on Friday, in line for a third day of gains in four, tracking strength in U.S. soyoil on the Chicago Board of Trade.

Malaysia backs $1.5 billion in aid for state palm oil firm Felda

10 Apr 2019

KUALA LUMPUR Malaysia will inject 6.23 billion ringgit ($1.52 billion) of financial aid into state-owned palm oil plantation agency Felda, after a government inquiry found poor management had sent the company's losses and debt soaring over the past decade.

Malaysia March palm oil stocks to come in at five-month low: Reuters survey

05 Apr 2019

KUALA LUMPUR Malaysia's palm oil stockpiles likely dropped during March to less than 3 million tonnes and the lowest mark in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains.

PREVIEW-Malaysia March palm oil stocks to come in at 5-mth low -Reuters survey

05 Apr 2019

* March stocks expected down 6.4 pct at 2.85 mln T -survey * Output to show a 6.8 pct rise to 1.65 mln T -survey * Exports estimated up 23.4 pct at 1.63 mln T -survey * Malaysian Palm Oil Board data due on April 10 By Emily Chow KUALA LUMPUR, April 5 Malaysia's palm oil stockpiles likely dropped during March to less than 3 million tonnes and the lowest mark in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains. March inventories in Malaysia, the world's second-largest palm oil producer and exporter, are expected to have fallen 6.4 percent from February to 2.85 million tonnes, the lowest since October 2018, based on the median estimate of eight planters, traders and analysts polled by Reuters. A confirmed dip in the stockpiles would support benchmark palm oil prices, which hit a three-month low in March before recovering on expectations of firmer demand. Palm prices closed 1.3 percent higher on Thursday, at 2,204 ringgit ($540.06) a tonne at the close of trade. The expected ease in inventories was attributed to stocking activities and demand ahead of Ramadan, the Muslim fasting month that begins in early May this year and which sees devotees break day-long fasts with communal feasting. This increases palm oil use for food and cooking. Importers typically stock up on the edible oil one to two months ahead of the festival. Palm oil shipments from Malaysia are pegged to come in at 1.63 million tonnes for March, a 23.4 percent rise from the previous month. The monthly gain, if confirmed by official data, would be the strongest in six months. "The low crude palm oil price environment triggered major restocking – buyers realized CPO prices were undervalued versus other edible oils," said William Simadiputra, an analyst at DBS Vickers Securities. Benchmark palm oil prices averaged 2,124 ringgit a tonne in March, the lowest in three months. Output in March is expected to have risen for its first gain after four months of declines. Survey respondents estimated that output rose 6.8 percent from February to 1.65 million tonnes. This would be the highest for March for Malaysia in Refinitiv Eikon records back to January 2000. "Our survey revealed that estates in Sarawak posted lower output on a month-on-month basis while Sabah and Peninsular Malaysia estates posted higher production," said Ivy Ng, regional head of plantations research at CIMB Investment Bank. Official palm oil data will be published by the Malaysian Palm Oil Board ‪after 0430 GMT on April 10. The median results from the Reuters survey put Malaysia's consumption in March at 270,493 tonnes. Breakdown of March estimates (in tonnes): Range Median Production 1,571,000 - 1,684,000 1,650,000 Exports 1,550,000 - 1,760,000 1,630,000 Imports 50,000 - 75,000 55,000 Closing Stocks 2,713,000 - 2,900,000 2,850,000 * Official stocks of 3,045,493 tonnes in February plus the above estimated output and imports yield a total March supply of 4,750,493 tonnes. Based on the median of exports and closing stocks estimate, Malaysia's domestic consumption in March is estimated to be 270,493 tonnes. ($1 = 4.0810 ringgit) (Reporting by Emily Chow; Editing by Tom Hogue)

Palm extends gains to one-month top on expectations of lower stocks

04 Apr 2019

KUALA LUMPUR Malaysian palm oil futures hit a one-month high on Thursday, supported by expectations of better exports demand and lower stocks.

Palm hits over one-week low as high stocks weigh on market

28 Mar 2019

KUALA LUMPUR Malaysian palm oil futures edged down to a more than one-week low in early trade on Thursday, as high inventory levels continued to weigh on the market.

Palm sees sharpest fall in three weeks on weaker related oils

25 Mar 2019

KUALA LUMPUR Malaysian palm oil futures fell to their lowest in three days on Monday tracking weaker related edible oils, and were on track for a second day of drop after five sessions of gains.

Malaysian palm oil firm Sime Darby Plantation looks downstream for growth

12 Mar 2019

KUALA LUMPUR, March 12 Malaysian oil palm grower Sime Darby Plantation plans to boost its refining capacity and produce more higher-margin products in a bid to cut its exposure to volatile palm oil prices, an executive told Reuters.

Palm reverses gains, falls for third day on weak demand sentiment

08 Mar 2019

KUALA LUMPUR Malaysian palm oil futures reversed early gains to close lower on Friday, charting a third straight day of losses on weaker demand outlook.

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