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VEGOILS-Palm oil ends higher on stocks draw, strong exports
June 11, 2013 / 6:03 AM / 5 years ago

VEGOILS-Palm oil ends higher on stocks draw, strong exports

* 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

 (Updates throughout)
    By Chew Yee Kiat
    SINGAPORE, June 11 (Reuters) - 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
month ago.  
    "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
 ($1=3.146 ringgit)

 (Editing by Himani Sarkar)

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