20120705 1606 Crude Palm Oil Related News by Reuters.

VEGOILS: Palm eases ahead of ECB rate meeting, weather caps losses DBYU2 FCPOc3 - RTRS 05-Jul-2012 13:21
Traders book profits in overbought market Market watching ECB policy decision later in the day Palm oil to drop to 3,062 ringgit -technicals
By Chew Yee Kiat
SINGAPORE, July 5 (Reuters) - Malaysian crude palm oil futures eased on Thursday as investors turned cautious ahead of the European Central Bank's (ECB) policy decision later in the day, booking profits from a weather-fuelled rally earlier in the week.
A Reuters poll of economists showed a majority expect the central bank to cut its main interest rate by 25 basis points to 0.75 percent, in a move that could spur economic growth and commodity demand. ECB/INT
A persistent drought in the U.S. Midwest that has damaged soybean crops pushed palm oil futures to a 5-week high on Wednesday, setting the stage for a price correction.
"The market is a little overbought technically and we see some initial profit taking. Fundamentally, end-stocks in Malaysia are tight while weather remains hot and dry in the U.S. Midwest," said a trader with a local commodities brokerage in Malaysia.
"Demand is also good with the current discount between palm olein and soybean oil."
By the midday break, benchmark September palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to 3,101 ringgit ($981) per tonne. Prices touched 3,147 ringgit on Wednesday, a level unseen since May 30.
Traded volumes stood at 14,177 lots of 25 tonnes each, slightly higher than the usual 12,500 lots.
On the technicals front, palm oil will fall to 3,062 ringgit per tonne as it has completed a rebound, said Reuters market analyst Wang Tao. (Full Story)
Traders anticipate more vegetable oil demand shifting to the cheaper palm oil on tighter global oilseed supply and buying ahead of the Muslim fasting month beginning in the third week of July.
Malaysia's palm oil exports rose in June from a month ago, according to cargo surveyor data. PALM/ITS PALM/SGS
Higher exports, together with weaker production growth, could pile further pressure on Malaysia's stocks, which fell to a 13-month low in May.
Industry regulator Malaysian Palm Oil Board (MPOB) will issue official data on stocks and output for June on Tuesday.
Brent futures were steady below $100 a barrel in Asian trade on Thursday as fresh evidence of weakness in European economies triggered demand concerns, even as investors kept up hopes for stimulus measures to counter fragile global growth. O/R
In other vegetable oils markets, the most active January 2013 soyoil contract DBYF3 on the Dalian commodity exchange edged up 0.1 percent, after touching a near two-month high on U.S. weather concerns.
The U.S. market is closed for the Independence Day holiday.