Thursday, November 22, 2012

20121122 1419 Palm Oil Related News.

VEGOILS-Palm oil edges lower for third day, Greece deal eyed
22-Nov-2012 13:11
Slowing exports may lead to another record high for stocks in Nov Lenders to meet again on Monday to discuss Greece bailout deal Palm oil to drop to 2,321 ringgit -technicals
(Updates prices, adds detail)
By Chew Yee Kiat
SINGAPORE, Nov 22 (Reuters) - Malaysian palm oil futures fell on Thursday, slipping for a third straight day, as slowing exports continued to weigh and investors stayed cautious ahead of a bailout deal for Greece that could boost sentiment.
International lenders will meet again next Monday after they failed for the second week to reach a deal to release emergency aid for Greece, but major lender Germany signalled that significant divisions remain. (Full Story)
Cargo surveyor data showed Malaysian exports of palm products for the first 20 days of November inched lower from a month ago, and while the fall was not significant, it nonetheless fuelled concern at a time when stocks had climbed to a record 2.51 million tonnes in October. (Full Story)
"The price outlook for crude palm oil has deteriorated. With the cargo surveyors’ export data for the first 20 days of November showing a decline of about 3 percent, we see a higher possibility now of November’s inventory level to register another record high," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note on Thursday.
By the midday break, the benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 2,427 ringgit ($793) per tonne. Prices traded in a range of 2,420 to 2,449 ringgit.
Total traded volumes stood at 14,281 lots of 25 tonnes each, higher than the usual 12,500 lots.
Technicals showed palm oil is expected to drop to 2,321 ringgit as it did not break a resistance at 2,464 ringgit, said Reuters market analyst Wang Tao. (Full Story)
Traders will be looking for clues from the meeting next Monday after European demand for palm oil showed signs of slowing. It could take a further hit if international lenders fail again to agree on how to get Greece's debt down to a sustainable level.
In related markets, Brent crude hovered near $111 as the Chinese economy showed further signs of recovery, bolstering the outlook for oil demand, though gains were capped as a ceasefire in the Gaza Strip eased concerns over supply. O/R
In other vegetable oil markets, the most active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange gained 0.1 percent by the midday break. The U.S. financial markets were closed for the Thanksgiving holiday.

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