Thursday, November 1, 2012

20121101 1533 Palm Oil Related News.

VEGOILS-China demand hope lifts palm oil futures, stocks weigh
Thu Nov 1, 2012 1:43am EDT
* Futures market rangebound between 2,508 - 2,528 ringgit
per tonne
    * October end-stocks could rise to 2.6 million tonnes
    * Palm oil's target at 2,468 ringgit unchanged -technicals

    By Anuradha Raghu
    KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures
climbed on Thursday as strong Chinese demand for soybeans
fuelled expectations for more edible oil orders in the weeks to
    Signs of strong China demand have been growing with economic
data showing Chinese private sector factories were at their
busies in eight months in October. Malaysia's palm oil exports
last month were at their highest in a year, driven by a steady
flow of Chinese orders as well as strong European demand.
    Prices of palm oil have dropped 20 percent so far this year
thanks mainly to record stocks. Although cheaper palm oil
cargoes has spurred demand, production has risen at a faster
pace and could lead to record stocks again in October.
    "The question is whether exports can override the burden of
the production. If demand is sustained or rises higher, at least
the stocks won't be so bad. People are very worried," said a
trader with a foreign commodities brokerage.
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange rose 1.2 percent to
2,525 ringgit ($827) per tonne.
    Total traded volumes stood at 11,366 lots of 25 tonnes each,
a tad lower than the usual 12,500 lots.
    Technicals showed palm oil still targets 2,468 ringgit per
tonne, as the current fall from 2,615 ringgit is expected to
reverse the rebound from the Oct. 3 low of 2,230 ringgit, said
Reuters market analyst Wang Tao.
    Surging palm oil output from Southeast Asia has led to
inventory levels in Malaysia, the world's No.2 producer, hitting
a record 2.48 million tonnes in September.
    Traders expected October end stocks to reach about 2.6-2.7
million tonnes given that production last month would have been
a seasonal peak.
    Brent crude edged down toward $108 a barrel on Thursday as
investors focused on concerns that storm Sandy's rampage across
the U.S. East Coast could reduce fuel demand and shrugged off
data pointing to a recovery in China.
    In other vegetable oil markets, U.S. soyoil for December
delivery inched up 0.8 percent in early Asian trade on
China demand hopes.
    The most-active May 2013 soybean oil contract on
the Dalian Commodity Exchange rose 0.8 percent by the midday

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