Palm jumps 1% ahead of USDA report

-A +A

KUALA LUMPUR (Sept 12): Malaysian palm oil futures rebounded on Tuesday after initial profit taking to record a second straight session of  gains, as the market anticipated positive data from the United States Department of Agriculture (USDA).

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange, which is trading near six-month highs, rose 0.96% to RM2,829 (US$673). It rose as much as 0.9% to RM2,836 earlier in the session following Monday's 1.5% gain.

Trading volumes were robust, at 72,166 lots of 25 tonnes each.

The USDA was due to release the World Agricultural Supply and Demand Estimates (WASDE) report later on Tuesday.

"We heard that it will be a friendly report. Palm is expected to trade range-bound between RM2,750 and RM2,850 per tonne," said a Kuala Lumpur-based futures trader.

Palm also tracked upward momentum in soyoil on the Dalian Commodity Exchange, the trader said.

The January soybean oil contract on the Dalian Commodity Exchange was up 0.25%, while January palm olein was 1.65% higher.

The Chicago Board of Trade (CBOT) soybean oil contract fell 0.43%.

Another trader said that with upbeat expectations for the WASDE report, the market was probably seeing some short covering beforehand.

Favourable data from Malaysia's industry regulator also continued to bolster overall sentiment, traders said.

The Malaysian Palm Oil Board (MPOB) said on Monday that palm oil stocks at end-August rose 8.79% to 1.94 million tonnes from July.

Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for Sept 1-10 rose 6.9% from a month earlier.

Palm, soy and crude oil prices at 1048 GMT

Contract                     Month      Last    Change         Low       High       Volume
MY PALM OIL               SEP7          2818    +15.00        2805       2818          101
MY PALM OIL               OCT7          2840    +35.00        2797       2846         1513
MY PALM OIL               NOV7          2830    +28.00        2791       2836        31172
CHINA PALM OLEIN          JAN8          5662    +92.00        5606       5672       543842
CHINA SOYOIL              JAN8          6350    +16.00        6326       6392       410228
CBOT SOY OIL              DEC7            35     +0.00       34.94      35.18         6032
INDIA PALM OIL            SEP7        539.40     +4.00      534.40      540.7         1412
INDIA SOYOIL              SEP7         660.5     +1.10      658.05      660.5         2390
NYMEX CRUDE               OCT7         47.93     -0.14       47.73      48.14       105834

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel

(US$1 = RM4.2060)
(US$1 = 64.02 Indian rupees)
(US$1 = 6.53 Chinese yuan)