Tuesday, 1 April 2014

Biggest Monthly Drop... - Reuters News

(CPO traders should know these general data)
* Palm prices fall 5.9 pct, biggest drop since Feb. 2013
* Malaysia's March palm oil exports fall 3.1-3.4 pct -cargo surveyors
* Palm oil to suffer 20 percent loss in 3 months -technicals By Anuradha Raghu

Malaysian palm oil futures fell to their lowest in a month and a half on Monday, with prices recording their biggest monthly drop in over a year as disappointing export data stoked worries about slowing global demand for the vegetable oil. Cargo surveyor Intertek Testing Services (ITS) reported that Malaysia's palm oil exports in March fell 3.1 percent to 1.21 million tonnes from a month ago, hurt by weak demand from the world's top edible oil buyers China and India.

Another cargo surveyor Societe Generale de Surveillance showed that exports for the same period fell 3.4 percent to 1.20 million tonnes shipped.

A stronger Malaysian ringgit also made the ringgit-denominated feedstock more expensive for overseas investors and refiners, curbing buying interest. The ringgit rose 0.2 percent to trade at 3.2660 against the U.S. dollar late Monday. "The weak exports are going to hold back the market," said a trader with a foreign commodities brokerage. "The strong ringgit is also a damper." The benchmark June contract on the Bursa Malaysia Derivatives Exchange had edged down 0.7 percent to 2,636 ringgit ($808) per tonne by Monday's close. Prices earlier fell to 2,626 ringgit, their lowest since Feb. 12. Total traded volume stood at 36,123 lots of 25 tonnes, slightly higher than the average 35,000 lots.

Technicals for the next quarter were bearish. Malaysian palm oil is expected to revisit its July 2013 low of 2,137 ringgit per tonne over the next three months, as it has completed a rebound from this level, Reuters market analyst Wang Tao said.

More details: http://www.reuters.com/article/2014/03/31/markets-vegoils-idUSL4N0MS1DD20140331