20121105 1446 Palm Oil Related News.

VEGOILS-Palm oil drops to 3-week low as stock concerns linger
Mon Nov 5, 2012 12:59am EST
* Market players expect Malaysian stocks at record high in
October
    * Prices fall to 2,396 ringgit, level last seen on Oct 12
    * Palm oil eyes 2,379-2,417 ringgit zone -technicals
    * India should tax crude palm oil imports at 10 pct -Mistry

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, Nov 5 (Reuters) - Malaysian palm oil futures
tumbled to their lowest in more than three weeks on Monday, as
traders continued to worry over large stockpiles in the world's
No.2 producer of the tropical oil.
    Traders and analysts expected inventories in Malaysia to
reach a fresh record high in October on the back of strong
production, which added to pressure from declines in other
vegetable oils.
    "The market's dragged down by soybean oil and soybeans, and
local sentiment is also not good," said a trader with a foreign
commodities brokerage in Malaysia.
    "The question for oilseeds, especially palm oil, is
basically Malaysia's end-stocks figures for October. Exports may
be good, but end-stocks are not coming down. The question is how
much, and we are looking at 2.5 million or 2.6 million tonnes."
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange had lost 4 percent to
2,397 ringgit ($782) per tonne, just off its intraday low at
2,396 ringgit, a level last seen on Oct. 12.
    Total traded volumes stood at 18,471 lots of 25 tonnes each,
much higher than the usual 12,500 lots, as traders rushed to
liquidate their positions.  
    Technicals showed palm oil is poised to break two supports
at 2,497 ringgit and 2,469 ringgit per tonne and fall towards a
range of 2,379-2,417 ringgit, Reuters market analyst Wang Tao
said.
    Concerns remained that strong exports of 1.6 million tonnes
in October would do little to counter healthy production that
may swell stockpiles. Industry regulator the Malaysian Palm Oil
Board (MPOB) releases data on October inventory levels on Nov.
12.
    "We expect the upcoming MPOB data to be uninspiring, as
inventory is poised to increase further, to another record high
of 2.65 million tonnes," Alan Lim Seong Chun, a research analyst
with Malaysia's Kenanga Investment Bank, said in a note on
Monday.
    "However, the high inventory should have already been
reflected in the very high discount of crude palm oil against
soybean oil, at more than $250 per tonne."
    The steep discount between palm and soybean oil could
trigger higher purchases from India, the world's biggest
vegetable oil importer, and top analyst Dorab Mistry called for
the country to impose an import duty of 10 percent on crude palm
oil to protect its farmers.      
    In related markets, Brent crude edged above $106 per barrel
on Monday as a steep drop on Friday attracted some buyers,
although investors remained focused on the U.S. presidential
elections and demand worries.
    In other vegetable oil markets, U.S. soyoil for December
delivery slipped 1.1 percent in early Asian trade. The
most active May 2013 soybean oil contract on the Dalian
Commodity Exchange slumped 2.8 percent.