20130103 1439 Palm Oil Related News.

VEGOILS-Palm oil inches lower; demand hopes limit losses
Thu Jan 3, 2013 1:19am EST
* Investors focus on impact of zero export tax, Jan export
data eyed
    * Palm oil seen retracing to 2,452 ringgit -technicals
    * Prices should trade in a range of 2,450-2,550 ringgit
-trader

 (Updates prices, adds detail)
    By Chew Yee Kiat
    SINGAPORE, Jan 3 (Reuters) - Malaysian palm oil futures
edged lower on Thursday as traders booked profit after prices
climbed to a two-month high in the previous session, although
losses were limited by hopes that a revised export tax structure
would boost demand.
    The tropical oil started the year strongly by jumping to its
highest since Nov. 2 on Wednesday after the United States
reached a fiscal deal that prevented the world's largest economy
from slipping into recession.
    Market players are now keeping a close eye on Malaysia's
Jan. 1-10 exports data to gauge the impact of the country's zero
export tax on demand.
    "We see a bit of profit-taking coming in. Every time we go
above 2,500 ringgit, there's no strong follow through," said a
trader with a foreign commodities brokerage in Malaysia.
    "The important issue now is with the new export tax
structure and traders want to see how Malaysian exports will be
for the first 10 days. Prices should be trading in a range of
2,450-2,550 ringgit."
    By the midday break, the benchmark March contract
on the Bursa Malaysia Derivatives Exchange had lost 0.6 percent
to 2,486 ringgit ($820) per tonne. Prices touched a two-month
top of 2,524 ringgit on Wednesday.
    Total traded volumes stood at 14,701 lots of 25 tonnes each,
higher than the usual 12,500 lots.  
    Technicals turned bearish as palm oil is expected to retrace
to 2,452 ringgit based on a wave analysis, Reuters market
analyst Wang Tao said.  
    But prices may find support as lower December production and
disruption to supply due to heavy rains could help ease
record-high stocks of 2.56 million tonnes, traders said.
    Industry regulator the Malaysian Palm Oil Board will release
official data on December's stocks and output next week.
    Investors are also watching closely for the impact of
China's stricter quality measures on edible oil imports, as that
could hurt demand for palm oil due to higher refining costs.

    Brent crude pared earlier losses to stay above $112 a barrel
on Thursday as positive data reinforced hopes of an economic
recovery in China, but the prospect of more U.S. budget battles
and rising oil supply weighed on prices.
    In competing vegetable oil market, U.S. soyoil for March
delivery rose 0.1 percent in early Asian trade. China's
Dalian Commodities Exchange is closed for the New Year holiday
and will resume trading on Friday.