JAKARTA, Sept 3 (Reuters) - Malaysian crude palm oil futures
fell for a second day on Wednesday, shedding early gains on
concerns over weak demand, dealers said.
A build-up in stocks at home, as palm oil enters the peak of
the production cycle, weighed on sentiment, some dealers said.
The price of the reddish-brown oil, used for products
ranging from soap to biodiesel, has fallen almost 20 percent so
far this year.
It is 45 percent below an all-time high of 4,486 ringgit hit
in March, largely due to concerns about high stocks and news of
defaults from key buyers India and China.
The benchmark November crude palm oil contract on the Bursa
Malaysia Derivatives Exchange <KPOc3> dropped 33 ringgit, or
1.33 percent, to 2,451 ringgit a tonne.
By the midday break, the contract was up 39 ringgit, or 1.57
percent, to 2,523 ($733) ringgit a tonne.
"The early gains were purely due to speculative interest.
But there was no follow-through buying as the price outlook is
cappped by concerns about rising supply and declining demand," a
trader said.
He said buyers should have enough stocks to meet the
consumption needs during Ramadan.
Leading industry analyst Thomas Mielke said on Wednesday
palm oil futures were likely to rise to 2,900 ringgit per tonne
by December on strong demand and lower output yields.
In the physical market in Malaysia, crude palm oil for
delivery in September stood at 2,530-2,550 a tonne in the south
and at 2,530-2,480 ringgit a tonne in the central region.
The Indonesian state marketing centre said it did not sell
10,500 tonnes of crude plam oil that it offered at an auction
due to low bids.
In Jakarta, refineries sold refined, bleached, deodorised
(RBD) palm olein -- used in cooking oil -- at 7,100 rupiah a kg,
down from 7,150 rupiah a kg on Tuesday.
Palm, soy and crude oil prices at 1056 GMT
Contract Last Net chg Settle Open High Low Volume
PALM OIL SEP8 2437 - 13.00 2417 2450 2515 2433 55
PALM OIL OCT8 2444 - 22.00 2433 2508 2541 2425 1498
PALM OIL NOV8 2451 - 33.00 2451 2509 2550 2433 10602
PALM OIL DEC8 2463 - 27.00 2457 2510 2554 2445 1685
CBOT soyoil* 51.53 -0.50 52.03 N/A 51.91 51.53 N/A
NYMEX crude**108.34 -1.37 109.71 N/A110.30107.32 N/A
Palm oil prices in Malaysian ringgit per tonne
* Soy oil in U.S. cents per pound
** Crude in USD per barrel
(Reporting by Aloysius Bhui; Editing by Sugita Katyal)
([email protected]; 62-21-2846364 ext 913)
* For a table on Malaysian physical palm oil prices, including
refined oil, Reuters Terminal users can double click on or type
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* To view freight rates from Peninsula Malaysia/Sumatra to
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* Reuters Terminal users can see cash and futures edible oil
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Vegetable oils -- <OILS/ASIA1>
Malaysian palm oil -- <OILS/MY01>
Malaysian palm oil exports -- <SGSPALM1>
CBOT soyoil futures -- <0#BO:>
CBOT soybean futures -- <0#S:>
Indian solvent -- <SOLVENT01>
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:>
Kuala Lumpur palm oil futures -- <0#KPO:>
European edible oil prices/trades -- [OILS/E]
Keywords: MALAYSIA PALM/