Tuesday, October 9, 2012

20121009 1436 Palm Oil Related News.

VEGOILS-Palm oil gains on possible Malaysia tax change, stocks may weigh
Tue Oct 9, 2012 1:30am EDT
* Palm oil to edge up to 2,503 ringgit -technicals
    * Felda eyes Philippines after peace deal
    * Coming Up: Malaysia Sept stocks, output on Wednesday

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, Oct 9 (Reuters) - Malaysian palm oil futures
edged up on Tuesday, supported by a possible export tax change
and traders taking positions ahead of key industry data due this
    The market made some headway after a Malaysian government
minister said on Monday the country will discuss possible
changes to its crude palm oil export tax regime on Friday.

    "We believe the current crude palm oil (CPO) price is still
unjustifiably low. we expect prices to rebound further by
year-end, as post high production, we expect CPO price to climb
higher," said Hong Leong Investment Bank's Chye Wen Fei in a
research note.
    But stocks could still weigh on the market for now. The
Malaysian Palm Oil Board is set to announce record stocks in
September on Wednesday.
    "The upcoming Malaysian Palm Oil Board (MPOB) inventory
level should see it reaching an all-time high of 2.43 million
tonnes, capping any strong price upside potentials," Kenanga
Investment Bank analyst Alan Lim said in a note.
    By the midday break, the benchmark December contract
 on the Bursa Malaysia Derivatives Exchange jumped 2.2
percent to 2,419 ringgit ($789) per tonne.
    Total traded volumes stood at 10,383 lots of 25 tonnes each,
slightly lower than the usual 12,500 lots.
    Palm oil may edge up to 2,503 ringgit per tonne, said
Reuters market analyst Wang Tao based on a wave analysis.
    Palm oil futures plunged to their near 3-year lows last week
on concerns over rising stocks and slowing demand, but analysts
expeced prices to recover by year-end.
    Malaysia's Felda Global Ventures will develop oil
palms in the southern Philippines after Manila agreed on a
historic peace deal with Muslim rebels that could open up tracts
of farm land, chief executive Sabri Ahmad said.
    In a bullish sign for palm oil, Brent crude futures rose on
Tuesday after two days of losses, with supply fears due to
escalating tensions in the Middle East prevailing over a
sluggish outlook for global demand.
    In other vegetable oil markets, U.S. soyoil for December
delivery gained 1.2 percent in Asian trade.
    The most active January 2013 soybean oil contract
on the Dalian Commodity Exchange edged up 0.9 percent by the
midday break, recovering from previous day's 4-month low.

No comments: