20120829 1423 Crude Palm Oil Related News.

VEGOILS-Palm oil slips amid stock build-up in Malaysia - Reuters
29-Aug-2012 13:35
Prices fall to 3,002 ringgit on profit-taking Palm oil to drop more to 2,971 ringgit per tonne -technicals Market eyes stock build in Malaysia palm oil sector Indonesia sets crude palm export tax at 13.5 pct for Sept
By Chew Yee Kiat
SINGAPORE, Aug 29 (Reuters) - Malaysian crude palm oil futures slipped to the lowest in nearly a fortnight, as traders booked profits with market focus shifting to rising stocks level in the world's second-largest producer.
Palm oil posted two straight weeks of gains as the worst drought in 56 years ravaged soybean crops in the U.S. Midwest, limiting soybean oil supply and raising demand prospects of the cheaper palm oil.
But prices have retreated this week, as market players eyed a build-up in Malaysian palm oil stocks on higher production in August.
"At the moment we still see prices heading towards no-man's land, although my view is that it's more on the bearish side rather than a bullish front," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.
"Stocks are going to rise but the level I'm looking at is around 2.1-2.15 million tonnes."
By the midday break, the benchmark November 2012 contract FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.8 percent to 3,004 ringgit ($963). Prices earlier hit 3,002 ringgit, the lowest level since Aug. 17.
Total traded volume stood at 12,055 lots of 25 tonnes each, slightly lower than the usual 12,500 lots.
Palm oil is expected to drop more to 2,971 ringgit per tonne to fill a gap formed on the hourly chart, said Reuters analyst Wang Tao. 
Malaysia's palm oil stocks in July rose 17.6 percent to close to 2 million tonnes, and traders expect stock levels to increase further in August on strong production growth. 
But resilient demand could help ease growth in stocks. Exports rose as much as 6.6 percent for the first 25 days of August from a month earlier, driven by shipments of tax-free crude grades and demand from India and China, cargo surveyor data showed. 
Exports of refined grades, however, fell compared to a month ago as more orders shifted to Indonesia on its favourable tax structure for refined products.
The world's top palm oil producer will cut export tax for crude palm oil to 13.5 percent in September and lower the export tax for refined palm olein to 6 percent in September from 7 percent in August, a trade ministry official said on Wednesday. Brent crude futures slipped towards $112 per barrel on Wednesday on expectations Hurricane Isaac, which hit land in Louisiana, would spare Gulf Coast oil production facilities from significant damage. 
In other vegetable oil markets, the most active U.S. soyoil contract for December delivery BOZ2 was almost flat by 0509 GMT. The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange dropped 0.6 percent by the midday break.