Friday, November 2, 2012

20121102 1534 Palm Oil Related News.

VEGOILS-Palm oil slips as stocks weigh, set for weekly loss
Fri Nov 2, 2012 1:24am EDT
* Market players expect record-high stocks for October
    * Futures on track for 2.9 percent loss for the week
    * Palm oil to retest support at 2,497 ringgit - technicals

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, Nov 2 (Reuters) - Malaysian palm oil futures
edged down on Friday and were on track to post a weekly loss, as
investors remained cautious on market expectations of
record-high stocks in October.
    Prices were locked in a tight range as traders looked for
fresh trading cues, although bearish sentiment seemed to
dominate despite strong export numbers that could help ease
    "The market is still stuck within a range and finding
direction," said a dealer with a foreign commodities brokerage
in Malaysia. "End stocks in October are going to hit higher,
around 2.63-2.65 million tonnes. With record-high stocks, the
market can't be bullish."
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange had fallen 0.4
percent to 2,527 ringgit ($828) per tonne, after trading in a
range of 2,520 to 2,533 ringgit.
    Total traded volumes were light at 6,708 lots of 25 tonnes
each, compared to the usual 12,500 lots.  
    For the week, the edible oil is on track to post a 2.9
percent loss as prices came under pressure on lower November
taxes in top producer Indonesia and as Sandy, one of the worst
storms to hit the United States in years, triggered fears of
slower commodity demand.
    Technicals showed palm oil will retest a support at 2,497
ringgit per tonne, with a good chance of breaking it and falling
to 2,469 ringgit, said Reuters market analyst Wang Tao.

    Malaysian October palm oil exports surged to 1.6 million
tonnes, the highest so far this year, thanks to significantly
stronger European demand.
    But concerns remained that stocks could still climb above an
all-time high of 2.48 million tonnes in September on seasonally
high output. Industry regulator, the Malaysian Palm Oil Board,
will release official data for October inventory levels on Nov.
    In a bearish sign for palm oil, Brent crude slipped below
$108 a barrel on Friday as investors eye key jobs data from the
United States for more signs of economic recovery, which would
boost fuel demand.
    In other vegetable oil markets, U.S. soyoil for December
delivery slipped 0.6 percent in early Asian trade. The
most-active May 2013 soybean oil contract on the Dalian
Commodity Exchange also fell, down 1.3 percent by the midday

No comments: