Palm oil futures in Malaysia up slightly Aug. 16 as traders bet strong exports bring stocks below 2 million tonnes this month

Andrew Rogers

Andrew Rogers

LOS ANGELES , August 17, 2011 () – Palm oil futures in Malaysia crept higher Aug. 16 with traders betting strong exports would bring stocks below 2 million tonnes this month, but the volatility in the financial markets has kept investors cautious, Reuters reported Aug. 17.

High stocks in Malaysia and Indonesia, and the unstable markets amid the recent downgrading of U.S. credit, have weighed palm oil. Trading was lighter Aug. 17 on investor caution, with exports continuing their solid performance and stocks coming down this month due to a fall in production during the Muslim holiday season, a foreign commodities broker said.

By mid-day Aug. 17, KPOc3, the benchmark contract on the Bursa Malaysia Derivatives Exchange, increased 0.4% to 3,015 ringgit (US$1,012) per tonne. On Aug. 16, prices reached near two-week highs at 3,045 ringgit per tonne. Traded volumes were light overall, with 5,043 lots of 25 tonnes traded compared with an average of 12,500 lots.

There was a negative turn in technicals, with the 3,144 ringgit per tonne bullish target being replaced with a bearish target of 2,917 ringgit, according to Retuers analyst Wang Tao.

For the first 15 days of August, Malaysian palm oil exports jumped more than a fifth with the trend expected to continue, according to traders.

There is likely to be a slide in production as estate workers take leave for the Muslim holy month of Ramadan, which began earlier this month an will end with the Eid celebration in late-August.

U.S. soyoil for September delivery remain unchanged in Asian trade, while May 2012 soyoil contracts, China’s most actively traded, rose 0.3%.

Strong demand for soybean, soyoil and soymeal are likely to push agricultural commodities prices higher in China, a trader with a Shanghai-based foreign brokerage.

The primary source of this article is Reuters, London, England, on Aug. 17, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.