Monday, 17 March 2014

Bloomberg News on CPO Futures 5th Day Drop

Bloomberg news excerpts --

* CPO Futures -3.1% last wk...
* NOTE: Shipments from Malaysia, 2nd-largest producer, -21% to 480,730 mt in 1st 15 days of March m/m, Intertek says March 15
* “Production is dropping, but if exports are also very weak, then there’s a high chance that inventories may rise again,” Arhnue Tan, analyst at Alliance Investment Bank, says by phone from Kuala Lumpur. “On that front, there’s no reason for palm oil prices to continue to trade towards 3,000 ringgit.”
* CPO Futures touched 2,916 ringgit on March 11, highest since Sept. 2012
* Inventories in Feb. -14% to 1.66m mt m/m, lowest since June 2013;
* output -15% to 1.28m mt, while
* exports -1.3% to 1.35m mt, lowest since July 2012 on MPOB data on March 10.
* Soybean oil’s premium over palm at $87.95/mt today; compares with avg of ~$244 in 2013.