Thursday, January 10, 2013

20130110 1415 Palm Oil Related News.

SGS CPO export down 34% to 343,081 tonnes for the period of 1~10 Jan 2013.

VEGOILS-Palm oil edges down on slowing exports, high stocks BOZ2 DBYF3 FCPOc3 - RTRS
10-Jan-2013 13:52
Malaysia's Jan 1-10 palm exports fall 25 pct -ITS Malaysia Dec palm oil stocks up 2.4 pct to record 2.63 mln tonnes Palm oil to rebound to 2,453 ringgit -technicals

(Updates prices, adds detail)
By Chew Yee Kiat
SINGAPORE, Jan 10 (Reuters) - Malaysian palm oil futures fell on Thursday, weighed by falling exports and persistently high stocks in the world's No.2 producer of the edible oil.
Exports of Malaysian palm oil products for Jan. 1-10 tumbled 25 percent to 373,462 tonnes from a revised 499,732 tonnes shipped during Dec. 1-10, cargo surveyor Intertek Testing Services said on Thursday. PALM/ITS
The fall came despite Malaysia's zero percent export tax that was expected to boost crude palm oil shipments and amid stricter Chinese regulations on edible oil imports that may have deterred some exporters.
"Exports were bad for the first ten days. A lot of people think that with the new tax structure, exports should improve but it's not necessarily so because for the past few years we already have a 3-million-tonne per year duty-free export quota," said a trader with a foreign commodities brokerage in Malaysia.
"For the longer term, yes, the tax structure is positive but if you expect immediate impact for the first ten days, I don't think it's possible."
By the midday break, the benchmark March contract FCPOc3 on the Bursa Malaysia Derivatives Exchange had lost 0.5 percent to 2,399 ringgit ($791) per tonne.
Total traded volume stood at 19,678 lots of 25 tonnes each, higher than the usual 12,500 lots.
Palm oil is expected to rebound to 2,453 ringgit based on technical analysis, as it may have formed a temporary bottom at 2,382 ringgit, said Reuters market analyst Wang Tao. (Full Story)
But palm oil could face further pressure as data released by the Malaysian Palm Oil Board after the midday break showed stocks climbed 2.4 percent from previous month to a new record at 2.63 million tonnes, fuelling concerns that inventory level could remain high well into January. (Full Story)
The data went against market expectations that stocks likely dropped 2.5 percent to 2.5 million tonnes. PALM/POLL
Malaysia's weather office maintained its forecast for heavy rain, saying the downpour may cause floods in low-lying areas in the key palm producing state of Sarawak and could possibly disrupt harvesting.
Brent crude futures inched up towards $112 per barrel on Thursday after trade numbers from China beat analysts' expectations, sparking hopes that recovery in the world's second-biggest oil consumer will drive fuel demand higher. O/R
In competing vegetable oil markets, U.S. soyoil for March delivery BOH3 edged up 0.1 percent in early Asian trade, with investors awaiting a U.S. Department of Agriculture supply-demand report due to be released on Friday.

UPDATE 1-Malaysia's Dec palm stocks hit record high, market sell-off seen 0#FCPO: - RTRS
10-Jan-2013 13:44
Palm oil stocks hit record high for 4th straight month Output falling on seasonally heavy rains Exports slipping on slower orders, difficulty in booking vessels

(adds details, comments)
KUALA LUMPUR, Jan 10 (Reuters) - - Malaysia's December palm oil stocks hit a record high for the fourth straight month as exports failed to keep up with output, bucking market expectations for a drop and potentially weighing on benchmark futures.
Data from the Malaysian Palm Oil Board showed 2012 closing stocks in the world's No.2 producer of the edible oil climbed 2.4 percent to 2.62 million tonnes. Traders had expected stocks to ease a little.
Benchmark palm oil futures 0#FCPO: dropped 0.5 percent to 2,399 ringgit ($790) before the data release at midday. Traders expect a sell-off when the market reopens later in the day as record stocks add to a list of investor concerns, including a slump in Malaysian exports during Jan 1-10.
"It will be a good time to sell down," said a trader with a foreign commodities brokerage. "These high stocks are rather stubborn and we will see declines maybe after February."
December production dropped 5.8 percent to 1.78 million tonnes from November as seasonally heavy rains affected harvesting in key oil palm growing areas. Heavier rains in January could see a bigger drop in yields, planters say.
Yet December output was still higher in absolute terms compared to exports, which fell 0.7 percent to 1.65 million tonnes.
Malaysia's exports declined as the winter season saw top buyers India and China switch to domestic oilseed supplies as palm oil tends to crystallise in colder weather and edible oil import stocks remain high.
Additionally, traders in Malaysia said they found it difficult to book vessel at the end of the year to ship out cargoes to customers.
Cargo surveyor Intertek Testing Services data showed Malaysian exports for the first ten days of January tumbled 25 percent to 373,462 tonnes but traders are still hopeful.
"In the second half of January, we should see a massive export push with Malaysia having set the crude palm oil export tax at zero in January," said another trader. "There is hope, we just have to be patient."

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