MALAYSIAN
crude palm oil futures ended more than 1 per cent lower on yesterday,
as players booked profits after data from cargo surveyors showed
lacklustre overseas demand.
Malaysia’s August palm oil exports
fell 17 per cent from a month ago, as the world’s No. 2 oil consumer
China slowed buying due to ample stockpiles.
“There’s no sign
for China to increase palm oil imports since there are still a lot of
stocks in the country, but soybean demand could be higher when weather
turns colder,” a trader with a Shanghai-based foreign brokerage said,
adding that the country has about 450,000-500,000 tonnes of palm oil
inventories at major ports.
However, some Malaysian traders are confident about the vegetable oil’s demand over the following month.
“Next
month’s demand is not going to slow down due to global supply tightness
in most commodities, including the grain and soy complex,” said a
trader with a foreign brokerage in Kuala Lumpur.
The benchmark November crude palm oil contract on Bursa Malaysia Derivatives Exchange dropped RM35 to RM2,535 per tonne.
The Malaysian market was closed the previous day for the national day holiday.
“There
were some adjustments towards price falls in overseas markets after the
public holiday as other vegoils markets fell when we were closed,” said
a trader in Kuala Lumpur.
Overall traded volume rose to 15,539 lots of 25 tonnes each from the usual 10,000 lots.
Oil
rose to 72 per barrel in Asian hours after news that Chinese
manufacturing growth accelerated last month, easing concerns over the
pace of economic recovery.
Other vegetable oils were mixed. US
soyoil for September delivery rose half a percent in Asian hours, while
the most active May soyoil contract on China’s Dalian Commodity Exchange
barely moved.
“China’s soyoil inched higher on stronger US
soyoil prices in the morning. But it doesn’t move much in order to
maintain the price level with the physical market,” said a trader in
Shanghai.
Soyoil spot price yesterday stood at 7,800 yuan (1,146) a tonne.
Source : Business Times
