September 11, 2013
Malaysian palm oil futures fell to their lowest in more than two weeks on Tuesday, tracking losses in the US soya market ahead of the next US Department of Agriculture production forecast. Soyabeans have lost almost 1.5 percent so far this week, weighing on palm oil, a close substitute for soyabean oil.
Palm investors were also cautious in the morning session ahead of August stocks data. The Malaysian Palm Oil Board (MPOB) numbers came after the midday break and showed a 0.1 percent increase from a month earlier. The reported end-stocks level, at 1.67 million tonnes, was below earlier expectations for a 4 percent rise to 1.73 million tonnes, but failed to lift the market.
“Palm oil is down mostly on external markets today, for instance look at Dalian soyabean oil. There is still uncertainty regarding the US dry weather impact on soya, and globally we are also looking at the situation in Syria,” said a trader with a foreign commodities brokerage in Kuala Lumpur. The benchmark November contract on the Bursa Malaysia Derivatives Exchange lost 2.1 percent to close at 2,348 ringgit ($717) per tonne, slightly above its intraday low at 2,346 ringgit, a level last seen on August 23.
Total traded volume stood at 34,291 lots of 25 tonnes each, a touch lower than the average 35,000 lots. Technicals showed palm oil may drop to 2,323 ringgit per tonne after a moderate rebound to 2,385 ringgit, according to Reuters market analyst Wang Tao.
Malaysian palm oil exports for September 1-10 rose 10.8 percent to 462,671 tonnes, from 417,414 tonnes during August 1-10, cargo surveyor Intertek Testing Services said after the midday break. In vegetable oil markets, the US soyaoil contract for December was almost flat in late Asian trade. The most-active January soyabean oil contract on the Dalian Commodities Exchange lost 1.6 percent. Courtesy Reuters
Published in ZaraiMedia.com