11 September 2014

Malaysian palm oil futures lower, tracking losses in crude and vegetable oil markets

KUALA LUMPUR: Malaysian palm oil futures inched lower on Wednesday, tracking losses in crude and vegetable oil markets overseas with investors bracing for forecasts of bigger global oilseed supplies, although a surge in palm export curbed losses.
Cargo surveyor Intertek Testing Services reported that exports of Malaysian palm oil products during Sept. 1-10 jumped 40.6 per cent to 487,955 tonnes compared to the same period a month ago, with shipments of the crude grade more than doubling.
The rise in exports comes after Malaysia said it will scrap export duty for crude palm oil for September and October in a move to encourage overseas sales from the No.2 producer.
But the increase in export demand might not be enough to immediately turn around prices, which have slumped 25pc so far in 2014, traders said.
By Wednesday’s close, the benchmark November contract on the Bursa Malaysia Derivatives Exchange had slipped 0.1pc to 2,032 ringgit ($635) per tonne, after falling to 1,997 ringgit in early trade.
Total traded volume stood at 47,010 lots of 25 tonnes, above the daily average of 35,000 lots.
In overseas markets commonly tracked by palm, the US soyoil contract for December inched down 0.09pc in Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange shed 1.93pc.
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