* Lower palm oil stocks, rising export demand support prices
* Benchmark futures traded in 2,439-2,464 ringgit range
* Traders await June 1-15 exports data
By Chew Yee Kiat
SINGAPORE, June 11 Malaysian palm oil futures
reversed early losses to end slightly higher on Tuesday,
supported by a drawdown in stocks in the world's No.2 producer
and strong demand.
The tropical oil has risen almost 9 percent in the past five
weeks -- biggest such gain in over a year, on hopes inventory
levels would come down further ahead of the Muslim holy month of
Ramadan, when consumption typically rises. Traders are now
waiting for exports data for the first 15 days of the month.
Malaysia's palm oil stocks dropped to 1.82 million tonnes at
the end of May, the lowest in nearly a year. Export demand for
the first ten days of June rose as much as 10 percent from a
"The market should be trading in the 2,420-2,470 ringgit
range and once prices break out of this range, we will be able
to see a clearer direction," said a trader with a foreign
commodities brokerage in Malaysia.
The benchmark August contract on the Bursa Malaysia
Derivatives Exchange inched up 0.1 percent to close at 2,455
($780) ringgit per tonne, after trading between 2,439 and 2,464
Total traded volumes stood at 32,041 lots of 25 tonnes each,
slightly lower than the usual 35,000 lots.
Analysts said lower end-May stocks in Malaysia may provide
support for prices in the near term and robust demand ahead of
Ramadan in July will likely ease stocks further this month.
"Looking forward, we believe that the stock level could fall
below 1.75 million tonnes by June as the total demand should
stay strong at levels similar to May," Alan Lim Seong Chun,
research analyst with Malaysia's Kenanga Investment Bank, said
in a note to clients.
In other markets, Brent crude edged further below $104 per
barrel after the world's largest consumer, the United States,
nearly doubled an estimate of its shale oil reserves, while
prospects of a slowdown in Chinese demand sapped prices.
In vegetable oil markets, U.S. soyoil for July gained
0.4 percent in late Asian trade. The Dalian Commodities Exchange
remains closed for a holiday and will resume trading on
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 0 +0.00 0 0 0
MY PALM OIL JUL3 2451 +5.00 2424 2456 2108
MY PALM OIL AUG3 2455 +2.00 2439 2464 12560
CBOT SOY OIL JUL3 48.25 +0.18 48.08 48.30 4299
NYMEX CRUDE JUL3 95.34 -0.43 95.25 95.91 14780
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
(Editing by Himani Sarkar)