20121121 1502 Palm Oil Related News.

VEGOILS-Palm oil edges down on demand concerns
Tue Nov 20, 2012 11:56pm EST
* Malaysia Nov. 1-20 exports down 3.8 pct m/m to 1.01 mln T
-SGS
    * Chinese demand rises, but exports to India, Europe drop
    * Muddy Waters publishes Olam letter, shares rebound

 (Updates prices, adds detail)
    By Chew Yee Kiat
    SINGAPORE, Nov 21 (Reuters) - Malaysian palm oil futures
eased on Wednesday, inching down for a second straight session
as lacklustre export data fuelled traders' concerns over a
slowdown in demand.    
    Malaysian palm exports for Nov. 1-20 fell 3.3 percent to
1.02 million tonnes from a month ago, cargo surveyor Intertek
Testing Services said on Tuesday. Another surveyor, Societe
Generale de Surveillance, reported a similar drop of 3.8 percent
in shipments for the same period.
    Although Chinese demand continued to grow on festival buying
for Lunar New Year and stocking up ahead of stricter regulation
in 2013, the gain was offset by much weaker shipments to Europe
and India.
    "The market is fundamentally bearish and prices will further
correct before positive sentiment enters the market," said a
trader with a Malaysian commodities brokerage.
    "A correction towards 2,350 to 2,400 ringgit per tonne
should be healthy for both consumers and packers."
    By the midday break, the benchmark February contract
 on the Bursa Malaysia Derivatives Exchange was down 1.1
percent at 2,430 ringgit ($792) per tonne. Prices on Tuesday had
risen to 2,485 ringgit, the highest since Nov. 2.
    Total traded volumes were thin, at 10,414 lots of 25 tonnes
each, compared to the usual 12,500 lots.  
    Shares of Olam International Limited rebounded on
Wednesday, in a sign that investors were relieved that research
firm Muddy Waters had yet to publish a long, detailed report on
the company as it has with other targets.
    The short-seller published its first official material on
the company on Wednesday, taking closer aim at the Singapore
commodities trader's debt load and its cash burn rate.  
    European demand for palm oil could take a further hit after
international lenders failed for a second week running to agree
on how to get Greece's debt down to a sustainable level,
suggesting the debt crisis could still drag on.
    In a bullish sign for palm oil, Brent crude rose above $110
per barrel on Wednesday, boosted by fears of supply disruption
from the Middle East as clashes raged between Palestinians and
Israelis, despite overnight truce talks.
    In other vegetable oil markets, U.S. soyoil for December
delivery fell 0.8 percent in early Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange edged up 0.6 percent by the midday break.