Wednesday, November 7, 2012

20121107 1445 Palm Oil Related News.

VEGOILS-Palm oil recovers from 1-mth low, floods eyed
Wed Nov 7, 2012 12:49am EST
* Prices rebound on bargain hunting
    * Traders eye flood risks in No.2 producer Malaysia
    * Palm oil to reach 2,423 ringgit -technicals

 (Updates prices, adds detail)
    By Chew Yee Kiat
    SINGAPORE, Nov 7 (Reuters) - Malaysian palm oil futures
gained on Wednesday and were on track to snap three days of
losses, with investors buying after prices marked a one-month
low earlier in the session and on concerns year-end floods in
the country could hurt production.
    "I heard there are worries about floods in the Johor area,
and we have also see some technical buying," said a
Singapore-based trader with a global commodities house,
referring to the state that accounts for almost 15 percent of
Malaysia's total palm production.
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange had gained 1.6
percent to 2,410 ringgit ($790) per tonne. Prices earlier fell
to their weakest since Oct. 8 at 2,364 ringgit.
    Total traded volumes stood at 17,471 lots of 25 tonnes each,
higher than the usual 12,500 lots.
    Technicals showed palm oil could rebound to 2,423 ringgit,
as support held firm at 2,377 ringgit, said Reuters market
analyst Wang Tao.
    Malaysia's palm oil exports rose 10 percent to a 2012-high
at 1.6 million tonnes in October, and the steep discount between
palm oil and soybean oil could uncover more demand and help ease
swelling stocks.
    Stock levels in Malaysia, the world's No.2 palm oil
producer, were projected to reach a record 2.67 million tonnes
in October, a Reuters survey showed on Tuesday.
    Traders will be looking for more trading clues as cargo
surveyor Intertek Testing Services releases Malaysian exports
data for Nov. 1-10 on Saturday and as industry regulator the
Malaysian Palm Oil Board issues October stocks data on Monday.
    In related markets, Brent futures held below $111 per barrel
on Wednesday as concerns about weak demand in a fragile economy
and Greece outweighed supply disruption worries on escalating
tension in the Middle East.
    Uncertainty about the U.S. election eased after television
networks projected a victory for President Barack Obama against
Republican challenger Mitt Romney in a tight race.

    Other vegetable oil markets continued to edge higher. U.S.
soyoil for December delivery inched up 0.5 percent in
early Asian trade, while the most active May 2013 soybean oil
contract on the Dalian Commodity Exchange had climbed
0.3 percent by the midday break.        

No comments: