Tuesday, June 19, 2012

20120619 1616 Crude Palm Oil Related News. (Source: Reuters)

VEGOILS-Palm edges up on U.S. dry weather outlook DBYU2 FCPOc3 - RTRS 19-Jun-2012 13:18
USDA reports damaged soy crop due to dry weather in Midwest Palm oil to revisit low of 2,838 ringgit -technicals Coming up: Malaysian palm oil exports for June 1-20 on Wednesday
By Chew Yee Kiat
SINGAPORE, June 19 (Reuters) - Malaysian palm oil futures gained on Tuesday on expectations of higher demand as dry U.S. weather could damage the soybean crop further, tightening global edible oil supply.
A victory by pro-bailout parties in the Greek polls over the weekend appears to have lessened the risk for a renewed financial crisis, sending palm oil futures to close just below the 2,900-ringgit mark on Monday.
But as optimism began to fade in financial markets, dry weather cues came into play as the U.S. Department of Agriculture (USDA) said unfavourable weather had damaged soybean crop quality.
"Prices should remain positive with the Greeks behind us. Dry weather in the U.S. Midwest also supports a bullish stance," said a trader with a local commodities brokerage in Malaysia.
By the midday break, benchmark September palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange gained 1.4 percent to 2,940 ringgit ($932) per tonne, after rising as high as 2,943 ringgit.
Traded volumes stood at 15,744 lots of 25 tonnes each, higher than the usual 12,500 lots.
Palm oil technicals were bearish as Reuters market analyst Wang Tao said prices would revisit the June 14 low of 2,838 ringgit. (Full Story)
But fundamentals remain supportive as Malaysian palm oil exports recorded a double-digit jump for the June 1-15 period from a month ago, reflecting resilient demand ahead of the Muslim fasting month starting in mid-July. PALM/ITS PALM/SGS
Cargo surveyors will issue exports data for June 1-20 on Wednesday.
The USDA revealed dry weather damage on Monday in its weekly crop report, saying 56 percent of soybean crop was in good-to-excellent shape as of Sunday, down four percentage points from the previous week. (Full Story)
A lower soybean crop could lead to a smaller supply of soybean oil, shifting demand to the cheaper refined palm oil, which is trading at a steep discount of close to $150.
Brent crude steadied around $96 a barrel on Tuesday, staying close to 16-month lows hit in the prior session, as Spain's rising borrowing cost showed Europe is nowhere near resolving its debt crisis that has hurt the outlook for fuel demand. O/R
In other vegetable oil markets, U.S. soyoil for July BOc1 delivery gained 1.5 percent. The most active Jan 2013 soyoil contract DBYF3 on the Dalian commodity exchange edged up 1.2 percent.
"The elections in Greece provided some support, but the main reason behind higher prices today was the dry weather in the United States although the impact could be short term," said Huang Zhi Qiang, an analyst with Guotai Junan Futures in Shanghai.

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