VEGOILS - Palm rises for fourth time on concerns about output, but weak exports cap gains
Malaysian palm futures rose for a fourth consecutive session on Monday. The gains were capped by weak export data, and the Chicago soyoil prices.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for February delivery had gained 5 ringgit (0.12%) to $4,119 ringgit (US$996) per metric ton. The contract had reached its highest level since November 21 earlier in the session.
Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, said that "Bursa Malaysia CPO Futures were trading on both sides today amid sharply lower Malaysian Palm Oil export and uncertainty regarding the production scenario."
Indonesia, Malaysia and Thailand were devastated by a tropical storm that formed in the Malacca Strait and caused heavy rains and strong winds for more than a week. On Sunday, rescue and relief officials were still trying access many flood-hit regions in Southeast Asian countries even though flood waters had receded. Tens of thousands of residents were evacuated from the three countries.
Intertek Testing Services, a cargo surveyor, reported that exports of Malaysian palm oils products fell 19.7% in November compared to the previous month. Indonesian exports of crude and refined Palm Oil increased by 7.83% in volume between January and October, according to the Statistics Bureau.
The contract rose 1.1% last weekend, but fell 2.78% in the month of November, marking its third consecutive monthly decline.
Dalian's palm oil contract, which is the most active contract, increased by 0.75%. Chicago Board of Trade soyoil prices were unchanged.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.
A Trade Ministry regulation shows that Indonesia's crude palm oil price reference for December is $926.14 per ton. This is down from the $963.75 in November.
Technical analyst Wang Tao stated that palm oil could retrace back to 4,084 Ringgit per metric tonne, due to resistance at 4,157 Ringgit.
(source: Reuters)
