Tuesday, October 2, 2012

20121002 1625 Palm Oil Related News.

VEGOILS-Supply outlook drags palm oil to new 2-year low
Prices touch new low at 2,394 ringgit, lowest since July
    * Futures down 24 percent so far since start of 2012
    * Palm oil to rebound to 2,500 ringgit -technicals

    By Chew Yee Kiat
    SINGAPORE, Oct 2 (Reuters) - Malaysian palm oil futures slid
further on Tuesday to their lowest in more than two years, as
rising stocks and the record  pace of the U.S. soybean harvest
pointed to a growing global supply of vegetable oils.
    Lacklustre export numbers for palm oil also contributed to
views that stocks in No.2 producer Malaysia could climb higher
in September after hitting a 10-month high in August.
    Traders took cues from Chicago soybeans that fell to a
three-month low on Tuesday on U.S. harvest pressure, weighing on
palm oil prices that have lost almost a quarter since the start
of this year.
    "The market has no bullish news to at least even have a
rebound. Technicals have been pointing to the fact that 2,000
ringgit can be easily reached," said a Singapore-based trader
with a global commodities house.
    By the midday break, the benchmark December contract
 on the Bursa Malaysia Derivatives Exchange had fallen
2.6 percent to 2,400 ringgit ($787) per tonne. Prices earlier
touched a low at 2,394 ringgit -- the lowest since July 2010.
    Total traded volumes on Monday were at 15,026 lots of 25
tonnes each, higher than the usual 12,500 lots.
    Reuters market analyst Wang Tao said technicals showed palm
oil would rebound to 2,500 ringgit per tonne, as its fall may
temporarily stop around a support at 2,407 ringgit, and added
that the rebound would little affect the current downtrend.

    Palm oil exports in September were weaker than expected,
slipping 0.7 percent from the previous month, according to cargo
surveyor Intertek Testing Services.
    Another cargo surveyor, Societe Generale de Surveillance,
reported a slight 0.5 percent increase, bolstered by higher
shipments of crude products.
    Brent crude futures steadied near $112 a barrel on Tuesday
as investors weighed a weaker demand outlook amid a sluggish
global economy against the continuing potential for supply
    In other vegetable oils markets, U.S. soyoil for December
delivery eased 0.4 percent in Asian trade. The Dalian
Commodity Exchange remains closed for the Golden Week holiday in
China and will resume trading on Oct. 8.

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