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Saturday, November 10, 2007
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Commodity News
Nov 9 2007 7:45AM
Malaysian palm to track crude, Mistry comments eyed

KUALA LUMPUR, Nov 9 (Reuters) - The following factors are likely to influence Malaysian palm oil futures on Friday.

PALM OIL

-- Malaysian crude palm oil futures are likely to trade at 3,000 ringgit a tonne for the next few months, industry analyst Dorab Mistry said on Thursday. [ID:nJAK238045]

Mistry, director of Godrej International, said global palm oil output is expected to increase by 3.8 million tonnes in 2008 while there will be little demand for palm oil from new power generators.

-- Malaysian crude palm oil prices may rise as high as 3,200 ringgit per tonne if average oil prices rise to more than $100 a barrel, James Fry, managing director of London-based LMC International, said on Thursday.

-- Malaysia and Pakistan are scheduled to sign a free-trade agreement before Monday, a source familiar with the negotiations said on Thursday, in a deal that is expected to boost Malaysian palm-oil exports. [ID:nKLR322380]

-- Malaysian crude palm oil futures broke past a key 3,000-ringgit resistance level to strike a record high on Wednesday, as crude jumped to a new peak and soyoil soared to a near 33-year high.

The benchmark January contract <KPOF8> on the Bursa Malaysia Derivatives Exchange rose as much as 49 ringgit, or 1.7 percent, to a high of 3,009 ringgit ($904), its seventh record high. The contract ended up 40 ringgit at 3,000 ringgit.

CRUDE OIL

-- U.S. crude oil futures <CLc1> jumped more than $1 on Friday as steadying world stock markets and nagging production problems helped resume the march toward the $100 milestone following two days of losses.

U.S. crude for December delivery traded up 99 cents to $96.45 a barrel by 0124 GMT, having touched an intraday peak of $96.48 a barrel.

SOYOIL

-- Soybean futures at the Chicago Board of Trade ended higher on Thursday, underpinned by the soaring soyoil market, which notched a near 33-year top, traders said.

December soyoil <BOZ7> ended 0.51 cent per lb higher at 44.15 cents, after its surge to 44.20 cents -- the highest price for a spot contract since Nov. 11, 1974.

INDIA DEMAND

-- India's vegetable oil demand is expected to grow by 6-7 percent each year for the next five years as its economy expands and population grows, an industry body said on Thursday.

The growth will translate into an additional demand of between 700,000-800,000 tonnes per year, B.V. Mehta, executive director of the Solvent Extractors' Association, told a palm oil conference. [ID:nJAK29977]

INDONESIA PALM OIL

-- Indonesia should revise its palm oil export tax rates because although they help contain jumps in local prices they also hurt consumers, a top industry analyst said on Wednesday.

Indonesia has introduced a new palm oil tax scheme under which tax rates are adjusted monthly, tracking movements of crude palm oil prices in international markets to contain soaring local cooking oil prices. [ID:nSP297906]

-- Indonesia's palm oil output is expected to rise to 18.5 million tonnes next year from a forecast of 17 million tonnes in 2007, the chairman of the Indonesian Palm Oil Producers Association said on Thursday.

((Reporting by Niluksi Koswanage; Reuters Messaging: [email protected]; [email protected]; +603-2026-2323)) * For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on <OILS/MY01> or type OILS/MY01 and press "enter". * To view freight rates from Peninsula Malaysia/Sumatra to China/, India, Pakistan and Rotterdam, please key in <OILS/ASIA1> and <OILS/ASIA2> and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils -- <OILS/ASIA1><0#OILS-AS> Malaysian palm oil -- <OILS/MY01><0#PALMOIL-AS> Malaysian palm kernel oil -- <OILS/ASIA1><0#PALKOIL-AS> Malaysian palm oil exports -- <SGSPALM1> CBOT soyoil futures -- <0#BO:> CBOT soybean futures -- <0#S:> Indian oilseeds -- <INOIL> Indian solvent -- <SOLVENT01> Daily Indian soybean/meal report -- [SOYP/IN] Daily Indian soyoil report -- [OILSP/IN] Weekly Indian vegetable oils -- [OILS/IN] Dalian Commodity Exchange -- <DC/MENU> Dalian soyoil futures -- <0#DBY:> Dalian refined palm oil futures -- <0#DCP:> Zhengzhou rapeseed oil -- <0#CRO:> Singapore JADE palm oil -- <0#PO:> Kuala Lumpur palm oil futures -- <0#KPO:> European edible oil prices/trades -- [OILS/E] Keywords: MALAYSIA PALM/PREOPENER

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