Monday, October 8, 2012

20121008 1455 Palm Oil Related News.

VEGOILS-Palm oil inches lower in choppy trade, industry data eyed
Palm oil's rebound limited to 2,503 ringgit -technicals
    * Malaysia delays decision on crude palm oil export tax
    * Dalian's soybean oil falls to 4-month low after week-long
    * Coming up: Malaysia Sept stocks, output on Wednesday

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, Oct 8 (Reuters) - Malaysian palm oil futures
slipped on Monday as traders braced for rising inventory levels,
but losses were capped by bargain-hunting after the market
suffered steep declines last week.
    A monthly report by the Malaysian Palm Oil Board (MPOB) on
Wednesday could show September stock levels hitting a record
high, setting a bearish tone for fundamentals.
    But prices look poised to stage a technical rebound after
falling to a near 3-year low and posting a third straight weekly
loss last week.
    "The market has no specific direction to go yet after
falling so much," said a Singapore-based trader with a global
commodities house.
    "We have the MPOB report for September's end-stock. The
market has been expecting the worst so if it is a bit better
than market expectations, that will help for a good rebound,"
the trader added.
    By the midday break, the benchmark December contract
 on the Bursa Malaysia Derivatives Exchange had inched
down 0.3 percent to 2,409 ringgit ($785) per tonne, after
trading in a 2,396-2,446 ringgit range.
    Total traded volumes stood at 15,743 lots of 25 tonnes each
in choppy trading, higher than the usual 12,500 lots.
    Technicals showed palm oil is expected to end its rebound at
or below 2,503 ringgit per tonne, and fall towards 2,230
thereafter, said Reuters market analyst Wang Tao.
    Palm oil investors are looking out for Malaysia export data
for Oct. 1-10, also on Wednesday, after weaker-than-expected
numbers in September failed to alleviate concerns over high
stock levels.
    The market received a temporary boost last week on a
possible Malaysian move to slash crude palm oil export taxes to
8-10 percent from 23 percent, but an official said on Friday
that a decision had been delayed.
    China's soybean oil futures fell to a 4-month low on Monday
after trade resumed following a week-long holiday and in line
with steep losses on the Malaysian palm oil market last week.

    The most active January 2013 soybean oil contract
on the Dalian Commodity Exchange was trading 2.3 percent lower
at 9,062 yuan per tonne by the midday break, after going as low
as 9,052 yuan, a level last seen on June 5.
    In a bearish sign for palm oil, Brent crude slipped below
$112 per barrel on Monday, dropping for a second straight
session on concerns a fragile global economy could curb demand,
but supply worries stemming from tensions in the Middle East may
help check losses.
    In other vegetable oil markets, U.S. soyoil for December
delivery was almost flat in Asian trade.

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