Wednesday, July 1, 2009
Sunday, June 21, 2009
Friday, June 19, 2009
Palm Oil Price Drops
Palm futures tumble as crude falls
June 18th, 2009Business Times
Thursday - June 18, 2009
CPO FUTURES
Palm oil futures yesterday declined as crude oil dropped, curbing the demand outlook for use of vegetable oils in alternative fuels.
The tropical commodity tumbled after gaining as much as 0.6 per cent earlier. Crude oil at more than US$72 a barrel supported palm oil between RM2,460 and RM2,500 a metric ton, CIMB Futures trader S Chandran said by phone.
“When crude oil stopped rising above US$72 and started stabilising between US$70 and US$72, crude palm oil had no additional support to push higher above a price of 2,500,” he said from Kuala Lumpur.
Palm oil for September delivery dropped as much as 1.4 per cent to RM2,366 a ton on the Malaysia Derivatives Exchange and traded at RM2,370 at 5.08 pm.
Crude oil for July delivery in New York fell 0.4 per cent to US$70.20 a barrel as of 5.06 pm Singapore time after earlier rising to US$71.28. The contract touched US$72.77 on Tuesday.
Rising palm oil supplies are also weighing on the price, Chandran said.
Stockpiles in Malaysia, the world’s second- largest producer, increased 5.7 per cent to 1.37 million tons in May from a month earlier, as output expanded and exports declined, the Malaysian Palm Oil Board said June 10.
“This month onwards, the production is going to keep rising, demand has slowed down a bit, anticipating the stocks to keep building up in the next two months until September,” he said.
Palm oil was likely to move to less than RM2,300 in the “near term,” Chandran said.
Thursday, June 11, 2009
Wednesday, June 10, 2009
CPO PRICE FUTURES FLAT, FALLING EXPORTS
JUNE 10, 2009
Crude palm oil futures end flat on talk of falling exports
NEWS SOURCE:
www.btimes.com.my
RELATED PALM OIL NEWS
Malaysian crude palm oil futures closed flat yesterday, giving up gains of up to around 1.6 per cent, as speculation over falling exports in the first 10 days of June sparked some late selling, traders said.
“We have to blame export rumours for the sell-off,” said a trader at a Kuala Lumpur-based brokerage.
The benchmark August contract on the Bursa Malaysia’s Derivatives Exchange settled up RM5 or 0.2 per cent, to RM2,465 per tonne, after trading as high as RM2,504. Overall volume was 15,648 lots of 25 tonnes each.
Cargo surveyors will report June 1-10 palm oil exports by the Southeast Asian country today.
The Malaysian Palm Oil Board (MPOB) will also announce May palm oil output, exports
and stocks today.
“We heard ten day exports at 289,000 tonnes, a drop of about 28 percent (from the same period in May). It is surprising because most people only think of (a) marginal fall to like 350,000 tonnes,” the Kuala Lumpur brokerage trader said.
Weaker demand from main buyers China and India at a time palm trees are entering a higher production season in the year could boost palm oil stocks in the world’s number 2 producer this month.
Palm prices inversely correlate to palm oil stocks. A drop in palm stocks to a 22-month low in April, coupled with lower yields in rival soybeans in South America, have played a key
role in supporting the price of the tropical oil, which has gained 45 per cent this year.
A Reuters poll on Monday forecast that Malaysia’s May palm oil stocks may drop 2.3 per cent to a 23-month low at 1.26 million tonnes, as exports and domestic demand were slightly higher than output, but the pace of decline is slowing.
In the Malaysian physical market, palm oil for June delivery was traded at RM2,480-RM2,510 in the southern and central regions.
Sunday, June 7, 2009
Palm Oil News : Palm Oil Export Cutback to India
JUNE 5, 2009 11:05 GMT+8
Cutback on palm oil exports to India likely
PETALING JAYA: Malaysia’s palm oil exports to India will likely register a cutback in the second half of this year due to India’s huge edible oils reserves and a possible re-imposition of import duties on vegetable oils, analysts said.
India had scrapped import duties on vegetable oils in April last year to keep prices at bay after inflation soared and oilseeds production declined.
Analysts said the latest development in the world’s second-largest edible oil consumer after China could disrupt the current healthy flow of local palm oil exports to India, especially during January to April.
“All will depend on the degree of the import tax re-imposition on palm oil. I believe if it is just 5% or 10% (import duty), it will still be manageable.
“However, if it goes beyond 20% on top of the current crude palm oil (CPO) price of RM2,600 per tonne, then exports in the coming months will definitely come down,” said CIMB Investment Bank Bhd analyst Ivy Ng.
Prior to India’s zero import duties regime, palm oil had been slapped with a 20% import duty.
According to the Malaysian Palm Oil Board (MPOB), local palm oil exports to India surged to 970,000 tonnes in 2008 compared with 511,167 tonnes in 2007.
Indian vegetable oil importers were seen increasing their uptakes over the past seven months, far beyond their normal requirement.
“This has resulted in huge edible oils reserves for end-May estimated at 1.7 million tonnes, exceeding the normal level of 1.1 million tonnes,” said an analyst with a foreign-based research house.
Last month, India was believed to have purchased over 800,000 tonnes of cooking oil, of which the bulk of about 700,000 tonnes were refined palm oil and CPO.
The analyst said: “This confirms our view that India’s astounding 76% edible oil import surge in the first four months this year has been for stockpiling rather than for consumption.”
He said Indian importers were busy stocking up on both crude and refined edible oils on fears that the recently-elected government in New Delhi would levy export and import taxes in the upcoming budget to be presented in parliament next month.
“If these taxes are imposed, the price of the commodity will increase more than the levy,” he added.
Meanwhile, a market observer said the export slowdown had started with the local palm oil shipment to India down to 121,000 tonnes in May from 163,000 tonnes in April.
MPOB is expected to release the latest May figures on palm oil export, production and inventory early next week.
Thursday, June 4, 2009
Friday, May 29, 2009
Palm Oil News
Palm futures flat as players cover positions
www.btimes.com.my
Published: 2009/05/29
CPO FUTURES
MALAYSIAN palm futures ended unchanged yesterday as some buyers took some positions after a key industry analyst predicted that prices of the vegetable oil could reach RM3,000 if the crude oil market strengthened.
The benchmark August contract on Bursa Malaysia’s Derivatives Exchange ended flat at RM2,505 per tonne (after going as low as RM2,440). Overall volume climbed to 12,897 lots of 25 tonnes each from 10,000 lots.
“I am surprised James Fry was that bullish. Players are just covering positions just in case the market starts to jump again on speculative trade,” said a trader with a local commodities brokerage.
yesterday, although he declined to give a timeframe.
Oil slipped on Thursday as global markets dropped on government debt worries but held firmly above US$63 a barrel as OPEC met in Vienna to discuss the group’s oil output and what price the world could afford to pay.
Crude oil markets give some direction to palm oil prices as rival vegetable oils like soyoil and rapeseed oil are increasingly diverted into the biodiesel sector in Europe and the United States, leaving palm oil to satisfy much of food demand.
US soyoil markets edged higher with the July delivery up 0.01 per cent in Asian hours. The most-active September soyoil contract on Dalian’s Commodity Exchange fell 0.6 per cent.
In the Malaysian physical market, palm oil for May and June shipment traded at RM2,560 and RM2,570 in the southern region.
Thursday, May 28, 2009
PALM OLEIN PRICE 29-05-09
PALM OLEIN CP10 PRICE
Palm Olein Parameters Specifications :
Iodine Value (Wijs) (IV) : 56 min
Cloud Point (CP) : 10
Slip Melting Point : 24degC Max
Free Fatty Acids : 0.10 pct max
Moisture & Impurities : 0.10 pct max
Color (5.14'' Lovibond Cell) : 3 Red max
Friday, May 22, 2009
Thursday, May 21, 2009
Monday, May 18, 2009
Wednesday, May 13, 2009
PRICE CPO MAY GO UP RM3000 (USD 857)
MAY 13, 2009 20:51 GMT+8
IOI Corp says palm oil yields will drop 5%
NEWS SOURCE:
www.btimes.com.my
RELATED PALM OIL NEWS
Palm oil stockpiles expected to drop below 1.8m tonnes Goldman Sachs: Palm oil to drop halting plantation stocks rally Crude Palm Oil Futures Fall on Concern Demand May Drop IOI Corp likely to see weaker 2Q earnings Malaysian Palm Oil Stockpiles & Output Drop to Nine-Month Low IOI Corp, Malaysia’s No 2. planter, said palm oil yields would fall by 5 per cent due to a current warm spell and that might push prices to RM3,000 in the near term if there was an uptick in overseas demand.
Planters struggled to boost output in Malaysia last month and may continue to do so as oil palms also suffered biological stress after last year’s strong harvests and low fertiliser use, IOI executive chairman Lee Shin Cheng said. Malaysia, the world’s second largest palm oil supplier, achieved yields at between 4 and 5 tonnes per hectare in 2008, government data showed. IOI, regarded as one of the most efficient plantations in Malaysia, achieved a yield of 6.1 tonnes, company data showed.
Hot weather leads to higher oil extraction rates as there is less water contamination but yields dry up as fresh fruit bunches are smaller and do not fully develop, plantation officials and traders have said. “Weather will be a crucial factor. Already people are talking about a possible El Nino. The market will be very explosive if poor weather sets in during the second half of 2009,” Lee said in an e-mail interview late today.
“Prices may go higher if there is a strong uptick in demand. We will not discount that RM3,000 is achievable in the near term. The benchmark July contract on Bursa Malaysia’s Derivatives Exchange settled up RM64 at RM2,789 (US$793.7) per tonne on rising hot weather fears in Malaysia and rival soyoil producing South America. Palm oil output in Malaysia and top supplier Indonesia generally registers double-digit growth in the second half of the year, building up stocks for the Asian festival season when top buyers India and China lock in supplies from June or July onwards.
But China appears to have kicked off its buying spree much earlier this year, with a 41.3 per cent rise in May 1-10 palm oil purchases compared to a month ago, cargo surveyor data showed early this week. “Barring weather, it is likely that crude palm oil prices could be lower in the second half (due to higher production),” Lee said. But we still do not expect prices to decline a lot and they should remain comfortably above RM2,500.”
IOI Corp says palm oil yields will drop 5%
NEWS SOURCE:
www.btimes.com.my
RELATED PALM OIL NEWS
Palm oil stockpiles expected to drop below 1.8m tonnes Goldman Sachs: Palm oil to drop halting plantation stocks rally Crude Palm Oil Futures Fall on Concern Demand May Drop IOI Corp likely to see weaker 2Q earnings Malaysian Palm Oil Stockpiles & Output Drop to Nine-Month Low IOI Corp, Malaysia’s No 2. planter, said palm oil yields would fall by 5 per cent due to a current warm spell and that might push prices to RM3,000 in the near term if there was an uptick in overseas demand.
Planters struggled to boost output in Malaysia last month and may continue to do so as oil palms also suffered biological stress after last year’s strong harvests and low fertiliser use, IOI executive chairman Lee Shin Cheng said. Malaysia, the world’s second largest palm oil supplier, achieved yields at between 4 and 5 tonnes per hectare in 2008, government data showed. IOI, regarded as one of the most efficient plantations in Malaysia, achieved a yield of 6.1 tonnes, company data showed.
Hot weather leads to higher oil extraction rates as there is less water contamination but yields dry up as fresh fruit bunches are smaller and do not fully develop, plantation officials and traders have said. “Weather will be a crucial factor. Already people are talking about a possible El Nino. The market will be very explosive if poor weather sets in during the second half of 2009,” Lee said in an e-mail interview late today.
“Prices may go higher if there is a strong uptick in demand. We will not discount that RM3,000 is achievable in the near term. The benchmark July contract on Bursa Malaysia’s Derivatives Exchange settled up RM64 at RM2,789 (US$793.7) per tonne on rising hot weather fears in Malaysia and rival soyoil producing South America. Palm oil output in Malaysia and top supplier Indonesia generally registers double-digit growth in the second half of the year, building up stocks for the Asian festival season when top buyers India and China lock in supplies from June or July onwards.
But China appears to have kicked off its buying spree much earlier this year, with a 41.3 per cent rise in May 1-10 palm oil purchases compared to a month ago, cargo surveyor data showed early this week. “Barring weather, it is likely that crude palm oil prices could be lower in the second half (due to higher production),” Lee said. But we still do not expect prices to decline a lot and they should remain comfortably above RM2,500.”
Subscribe to:
Posts (Atom)
