Thursday, December 6, 2012

20121206 1624 Palm Oil Related News.

VEGOILS-Palm oil perks up on soy crop weather woes, China demand
Thu Dec 6, 2012 1:24am EST
(Updates with details, price moves)
    * China snapping up soy cargoes, pointing to more palm oil
    * Reuters survey shows palm oil stocks likely hit record in
    * Wet weather in Argentine delaying soy plantings, yields
may get hurt

    By Niluksi Koswanage
    KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures
edged up 0.7 percent on Thursday on hopes demand would rise as
unfriendly crop weather dents supply of competing Argentine
soyoil, but concerns of record November stockpiles in the
world's No.2 producer kept a lid on gains.
    Palm oil prices have dropped for the last seven consecutive
sessions on worries Malaysia's stocks may hit a record 2.58
million tonnes in November.
    But concerns of a surplus eased as wet weather in No.3
soybean supplier Argentine continued to delay plantings and
threaten yields at a time of strong Chinese demand.
    China, which has been snapping up U.S. soybean cargoes, is
also looking to import more palm oil before Beijing imposes
stricter quality controls on the refined grades on Jan. 1.
    Higher demand could soften the downward trend in palm oil
futures that are set to post three straight quarters of declines
this year on high stocks and concerns of euro zone debt crisis
arresting global economic growth.
    "High stocks hang over the palm oil market but there may be
a bit of hope from the probable decline in South American soy
crops," said a trader with a foreign commodities brokerage.
    By the midday break, benchmark February contract on
the Bursa Malaysia Derivatives Exchange rose 0.7 percent at
2,300 ringgit ($760)per tonne.
    Total traded volumes rose to 20,350 lots of 25 tonnes each,
compared to the usual 12,500 lots.
    Malaysian crude palm oil shipments are expected to rise in
the next few weeks as planters rush to exhaust their annual
tax-free export quota allocation totalling 3.5 million tonnes
and which is set to expire at the end of December.
    Brent crude held below $109 per barrel on Thursday, as
niggling worries about the global economy countered supply fears
from simmering Middle East tensions.
    In palm oil's competing markets, U.S. soyoil for December
delivery edged up 0.6 percent. The most active May 2013
soybean oil contract on the Dalian Commodity Exchange
climbed 0.8 percent.

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