20120911 1600 Palm Oil Related News.

VEGOILS-Palm oil falls to 1-mth low on stocks, USDA in focus - RTRS
11-Sep-2012 13:13
Malaysia palm exports up, but sentiment bearish on high stocks Futures fall to 2,878 ringgit, the lowest since Aug. 15 Palm looks netural in 2,895-2,943 range -technicals
By Chew Yee Kiat
SINGAPORE, Sept 11 (Reuters) - Malaysian crude palm oil futures slipped to a near one-month low on Tuesday, as traders turned cautious on high stocks and ahead of key reports by the U.S. Department of Agriculture (USDA) due this week.
The Malaysian Palm Oil Board (MPOB) reported August stocks at a 10-month high of 2.1 million tonnes, erasing some gains in palm oil futures that are trading 9 percent lower so far this year.
Traders also avoided taking risky positions ahead of the USDA's monthly supply-demand and crop production reports that could provide insight into the extent of drought damage on soybean crops.
"Today's selloff is purely technical. Basically we saw long liquidation coming in early in the morning. After the market broke below 2,900 ringgit, further selling came in," said a trader with a foreign commodities brokerage in Malaysia.
By the midday break, the benchmark November contract FCPOc3 on the Bursa Malaysia Derivatives Exchange slipped 1.8 percent to 2,883 ringgit ($930) per tonne. Prices earlier fell to 2,878 ringgit, the lowest level since Aug. 15.
Total traded volume stood at 23,763 lots of 25 tonnes each, much higher than the usual 12,500 lots.
Technicals will remain neutral until palm oil falls out of the range of 2,895-2,943 ringgit, said Reuters market analyst Wang Tao, adding that a drop below 2,895 ringgit will extend to 2,867 ringgit.
Demand strengthened as Malaysia's palm oil exports rose as much as 30 percent for the Sept. 1-10 period from a month ago, cargo surveyor data showed on Monday.
"Though the latest data shows optimism on the export side on the back of higher tax-free crude palm oil quota, a growing concern is on the stockholding level, which has now spiralled to more than 2 million tonnes," said Malaysia-based TA Securities in a note to clients.
"This would adversely impact the price of crude palm oil, moving forward. To aggravate further, Indonesia's stock level appears to be higher than consensus expectations."
Brent crude futures fell for the first time in four days on Tuesday as investors took profits, though they stayed near $115 a barrel with declines limited by hopes the U.S. Federal Reserve would unveil further steps to stimulate the economy this week.
In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 rose 0.2 percent by 0457 GMT. The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange was almost flat by the midday break.