7 Nov 2013 14:08

(Nov. 7): Palm oil fluctuated as investors weighed speculation that production in Malaysia was lower-than- expected last month, against concerns the rally into a bull market will hurt demand.

The contract for January delivery fell 0.2 percent to 2,541 ringgit ($800) a metric ton by the midday break, after rising 0.6 percent on the Bursa Malaysia Derivatives. Futures retreated 3.1 percent this week through yesterday after rallying into a bull market. Palm for physical delivery in November was at 2,560 ringgit, data compiled by Bloomberg show.

Production in Malaysia, the second-biggest supplier, probably fell in October from a month earlier, while exports were little changed and reserves expanded to the highest level since April, showed a Bloomberg survey published yesterday. Output is typically highest from July to October. The Malaysian Palm Oil Board is set to release the data on Nov. 11.

“Investors are cautious and reluctant to take any major directional call ahead of the MPOB data,” said Isha Trivedi, an analyst at PhillipCapital India Pvt. in Mumbai.

Futures, heading for the first annual gain in three years, advanced to 2,628 ringgit on Nov. 1, the highest close since September 2012 and 21 percent more than the 2,167 settlement on July 29, meeting the common definition of a bull market.

Soybean oil for December delivery was little changed at 41.12 cents a pound on the Chicago Board of Trade, while soybeans for delivery in January were at $12.5675 a bushel.

Refined palm oil for May delivery gained 0.2 percent to 6,280 yuan ($1,030) a ton on the Dalian Commodity Exchange and soybean oil was little changed at 7,216 yuan.