Thursday, February 27, 2014

Palm advancing to RM3,000 as dry weather bites

KUALA LAMPUR: Palm oil advanced to the highest level in more than 17 months onspeculation that inventories may decrease in Malaysia, the largest supplier after Indonesia, as output declines for a fourth month.

The contract for May delivery climbed as much as 2.2% to 2,795 ringgit ($854) a metric tonne on theBursa Malaysia Derivatives, the highest level for the mostactive contract since September 2012, and was at 2,793 ringgit at 5:11 p.m. in Kuala Lumpur. Futures are set for an 9.2% gain this month. 

Production in Malaysia dropped about 9% in the first 20 days of the month from the same period in January, said Paramalingam Supramaniam, a director at Pelindung Bestari, a Selangor-based broker, citing estimates from the Malaysian Palm Oil Association. Output fell to 1.51 million tonne last month and reserves shrank to 1.93 million tonne, Malaysian Palm Oil Board data show. The harvest is the lowest in January and February because of growing cycles. 

"Lower inventories of between 1.7 million to 1.8 million tonne are expected due to the lower production this month," said Arhnue Tan, an analyst at Alliance Investment Bank in Kuala Lumpur. "The cut to soybean crop estimates may increase dependency on palm oil, keeping stockpiles low." 

Output of soybeans, crushed to make an alternative oil, will be 4.4% less than earlier expected in South America after dry weather hurt crops in Brazil, according to Oil World. 

Prices rose on speculation that an El Nino weather pattern can occur later this year, impacting palm oil production, said Hiro Chai, vice-president at CIMB Futures in Kuala Lumpur. The El Nino, which can parch Australia and parts of Asia while bringing rains to South America, may occur in the coming months, Australia's Bureau of Meteorology said on Tuesday. 

Soybean oil for May delivery gained 1.2% to 41.34 cents a pound on the Chicago Board of Trade, while soybean futures lost 0.2% to $13.84 a bushel after reaching $13.885 yesterday, the highest since September 13. 

Refined palm oil for September delivery gained 0.5% to close at 6,240 yuan ($1,019) a tonne on the Dalian Commodity Exchange. Soybean oil ended little changed at 6,834 yuan.

Tuesday, February 25, 2014

Palm rises to 17-month high as Brazil soy crop harmed by rain

Palm oil climbed for a sixth day to a 17-month high on speculation that dry weather will damage soybean crops in Brazil, boosting demand for the tropical oil used in everything from food to fuel.

The contract for May delivery advanced as much as 0.7 percent to 2,734 ringgit ($829) a metric ton on the Bursa MalaysiaDerivatives, the highest level since September 2012, and was at 2,716 ringgit at 3:11 p.m. in Kuala Lumpur.

Futures rallied 27 percent from a three-year low of 2,137 ringgit in July on concern dry weather in parts of Indonesia and Malaysia, which account for more than 80 percent of global palm oil supplies, may curb production. Soybeans rallied to the highest since December today as drought scorched fields in Brazil, the world’s biggest exporter of the oilseed, crushed to yield an alternative oil to palm oil.

Soybean oil is providing a lot of support to palm,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental Singapore Pte. “Stockpile in Malaysia will come down because of rising exports.”

Malaysia’s palm oil production in the first half is seen impacted by a lack of rainfall in some regions in June and July 2013, Hariyanto Wijaya, an analyst at Mandiri Sekuritas, unit of Indonesia’s largest bank by assets, said in an e-mail. Growth in output in Indonesia is not as good as previous years because of a lack of newly matured crop as new planting in 2010 was relatively small, he said.

Palm oil shipments from Malaysia climbed 27 percent to 595,125 tons in first 15 days of the month, compared with the same period in January, SGS (Malaysia) Sdn. said Feb. 17.

Soybean oil for delivery in May fell 0.2 percent to 40.58 cents a pound the Chicago Board of Trade today after climbing 3 percent yesterday to the highest level at close for a most-active contract since Dec. 11. Soybean futures were little changed at $13.4675 a bushel after jumping to $13.4925, the highest level since Dec. 10.

Refined palm oil for May delivery rose 1.3 percent to 6,078 yuan ($1,001) a ton on theDalian Commodity Exchange. Soybean oil climbed 1.4 percent to 6,798 yuan.

To contact the reporters on this story: Pratik Parija in New Delhi atpparija@bloomberg.net; Yoga Rusmana in Jakarta at yrusmana@bloomberg.net

To contact the editor responsible for this story: James Poole atjpoole4@bloomberg.net




Saturday, February 1, 2014

20 bulan selepas penanaman

Kelapa sawit baka AAR telah mula mengeluarkan tandan. Beberapa pokok sawit telah mula mengeluarkan 12 buah tandan. Ini merupakan peringkat awal pengeluaran hasil dan dijangka boleh dikutip pada akhir bulan Disember tahun ini.