Friday, October 5, 2012

20121005 1528 Palm Oil Related News.

Reuters Survey :
Malaysia Sep 2012 Crude Palm Oil
- Exports seen up 5.8% at 1.51 million tonnes from Aug 2012
- Stocks seen up 16.4% at 2.46 million tonnes from Aug 2012
- Output seen up 20% at 2 million tonnes from Aug 2012

VEGOILS-Palm oil up 4 pct, but heads for weekly loss; export tax eyed
Fri Oct 5, 2012 2:05am EDT
By Chew Yee Kiat
    SINGAPORE, Oct 5 (Reuters) - Malaysian palm oil futures
gained on Friday as steep losses earlier in the week continued
to lure buyers back into the market, while there was also some
positioning ahead of a government decision on a proposal to cut
palm oil export taxes.
    But prices are on still on track for a weekly drop of almost
4 percent, their third straight weekly decline.
    Palm oil shed more than 11 percent in the first two days of
the week, tumbling to a near 3-year low at 2,230 ringgit per
tonne on Wednesday, before paring losses later in the week.
    "This rebound is very much within anticipation, selling has
been exhausted," said a dealer with a foreign commodities
brokerage in Malaysia.
    "There's definitely short covering ahead of the weekend."
    By the midday break, the benchmark December contract
 on the Bursa Malaysia Derivatives Exchange surged 4.1
percent to 2,448 ringgit ($803) per tonne, after trading in a
range of 2,385-2,448 ringgit.
    Total traded volumes stood at 15,039 lots of 25 tonnes each,
higher than the usual 12,500 lots.
    Traders are awaiting a possible decision by the Malaysian
cabinet on a proposal to cut crude palm oil export taxes to 8-10
percent from a current 23 percent in a bid to counter
competition from top producer Indonesia.
    Technicals showed palm oil would rebound more to 2,503
ringgit as it has cleared a resistance at 2,399 ringgit, said
Reuters market analyst Wang Tao.
    After a steep decline in prices in recent weeks, analysts
are calling for a recovery by the end of the year.  
    "In our view, crude palm oil (CPO) prices are due for a
significant upward correction, to 3,250 ringgit by end Q4 from
current levels near 2,350 ringgit, after an excessive decline in
September and October," said Standard Chartered analyst Abah
Ofon in a research note.
    The recovery will be driven by a drop in Malaysian
production and Indonesian inventories in Q4 as well as
supportive external markets and bullish CPO price seasonality,
the note added.
    In a bearish sign for palm oil, Brent futures slipped below
$112 per barrel on Friday, but they are on course to end a
choppy week nearly flat as rising tensions in the Middle East
battle with perennial worries about the global economy and oil
    In other vegetable oils markets, U.S. soyoil for December
delivery gained 0.3 percent in Asian trade. The Dalian
Commodity Exchange is closed for a week-long holiday in China
and will resume trading on Oct. 8.  

STOCKS NEWS INDONESIA-Bahana expects recovery in crude palm oil
Bahana Securities said crude palm oil (CPO) price may recover in the next few weeks as the current downturn is not sustainable, and it expects strong demand from India and China.
"We remain positive on the Indonesian CPO counters as all CPO counters have underperformed the index by 8 percent in the last one month on seasonally low CPO price," Bahana Securities analyst Leonardo Henry Gavaza, wrote in a note on Thursday.
The research house's top picks in the sector are PT Astra Agro Lestari Tbk and PT BW Plantation on positive growth outlook, recommends to buy the stocks.
At 13.35 a.m. (0635 GMT), the Jakarta Agriculture Index was up 0.26 percent, while the broader Jakarta Composite Index was up 0.38 percent.

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