A worker collects palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur in this February 18, 2014 file photo. — Reuters picA worker collects palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur in this February 18, 2014 file photo. — Reuters picKUALA LUMPUR, Aug 11 — Palm oil stockpiles in Malaysia, the biggest producer after Indonesia, increased last month from the lowest level since June 2013 as production rose more than expected. Futures in Kuala Lumpur declined to a one-year low.
Reserves advanced 1.5 per cent to 1.68 million metric tons in July from a month earlier, the Malaysian Palm Oil Board said. The median of estimates in a Bloomberg survey was for a drop to 1.6 million tons. Output rose 6.1 per cent to 1.67 million tons and exports fell 2.3 per cent to 1.45 million tons, board data showed. That compares with estimates of 1.62 million tons for output and 1.45 million tons for shipments in the survey.
Futures in Kuala Lumpur tumbled from an 18-month high in March into a bear market last month on forecasts for record US production of soybeans, which can be crushed to make an alternative oil. Palm prices will probably decline on poor demand, ample oilseed supply and reduced weather risks, according to Rabobank International.
“Stockpiles are higher than what people were expecting,” Ivy Ng, an analyst at CIMB Investment Bank Bhd, said by phone. “There is a concern that exports can’t keep up with production, so inventories will keep rising.”
Prices slumped 2.2 per cent to RM2,183 a ton on Bursa Malaysia Derivatives today, the lowest level since July 30, 2013. Futures have declined 18 per cent this year.
Soybean crop
Soybean oil in Chicago dropped as much as 1.4 per cent to 35.38 cents a pound today, the lowest since October 2009. That reduced its premium over palm to an average of US$93.51 a ton this year, compared with US$244 (RM782.63) in 2013, data compiled by Bloomberg show. The US soybean harvest will rise to a record 3.865 billion bushels this year, more than the 3.8 billion estimated by the Department of Agriculture, INTL FCStone said Aug. 4.
Palm oil production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year, according to Dorab Mistry, director at Godrej International Ltd. The two Southeast Asian producers together account for 86 per cent of world supplies.
Output “turned out to be quite strong, suggesting that the harvest has been good and there are a lot of fruits on the trees,” Ng said.
Rabobank cut its outlook for palm oil this month to 2,400 ringgit in the third quarter from 2,500 ringgit, saying reduced probability of El Nino has eased the weather risk.
The odds of an El Nino, which can bring drought to the Asia-Pacific region, have fallen to about 65 per cent through the end of the year, the US Climate Prediction Center said on Aug. 7. The agency had earlier put the chance of the phenomenon forming at almost 80 per cent.— Bloomberg
- See more at: http://www.themalaymailonline.com/money/article/palm-inventories-climb-from-one-year-low-as-output-increases-1#sthash.UJe11Pt7.dpuf
A
worker collects palm oil fruits inside a palm oil factory in Sepang,
outside Kuala Lumpur in this February 18, 2014 file photo. — Reuters picKUALA
LUMPUR, Aug 11 — Palm oil stockpiles in Malaysia, the biggest producer
after Indonesia, increased last month from the lowest level since June
2013 as production rose more than expected. Futures in Kuala Lumpur
declined to a one-year low.Futures in Kuala Lumpur tumbled from an 18-month high in March into a bear market last month on forecasts for record US production of soybeans, which can be crushed to make an alternative oil. Palm prices will probably decline on poor demand, ample oilseed supply and reduced weather risks, according to Rabobank International.
“Stockpiles are higher than what people were expecting,” Ivy Ng, an analyst at CIMB Investment Bank Bhd, said by phone. “There is a concern that exports can’t keep up with production, so inventories will keep rising.”
Prices slumped 2.2 per cent to RM2,183 a ton on Bursa Malaysia Derivatives today, the lowest level since July 30, 2013. Futures have declined 18 per cent this year.
Soybean crop
Palm oil production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year, according to Dorab Mistry, director at Godrej International Ltd. The two Southeast Asian producers together account for 86 per cent of world supplies.
Output “turned out to be quite strong, suggesting that the harvest has been good and there are a lot of fruits on the trees,” Ng said.
Rabobank cut its outlook for palm oil this month to 2,400 ringgit in the third quarter from 2,500 ringgit, saying reduced probability of El Nino has eased the weather risk.
The odds of an El Nino, which can bring drought to the Asia-Pacific region, have fallen to about 65 per cent through the end of the year, the US Climate Prediction Center said on Aug. 7. The agency had earlier put the chance of the phenomenon forming at almost 80 per cent.— Bloomberg
A
worker collects palm oil fruits inside a palm oil factory in Sepang,
outside Kuala Lumpur in this February 18, 2014 file photo. — Reuters picKUALA
LUMPUR, Aug 11 — Palm oil stockpiles in Malaysia, the biggest producer
after Indonesia, increased last month from the lowest level since June
2013 as production rose more than expected. Futures in Kuala Lumpur
declined to a one-year low.Futures in Kuala Lumpur tumbled from an 18-month high in March into a bear market last month on forecasts for record US production of soybeans, which can be crushed to make an alternative oil. Palm prices will probably decline on poor demand, ample oilseed supply and reduced weather risks, according to Rabobank International.
“Stockpiles are higher than what people were expecting,” Ivy Ng, an analyst at CIMB Investment Bank Bhd, said by phone. “There is a concern that exports can’t keep up with production, so inventories will keep rising.”
Prices slumped 2.2 per cent to RM2,183 a ton on Bursa Malaysia Derivatives today, the lowest level since July 30, 2013. Futures have declined 18 per cent this year.
Soybean crop
Palm oil production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year, according to Dorab Mistry, director at Godrej International Ltd. The two Southeast Asian producers together account for 86 per cent of world supplies.
Output “turned out to be quite strong, suggesting that the harvest has been good and there are a lot of fruits on the trees,” Ng said.
Rabobank cut its outlook for palm oil this month to 2,400 ringgit in the third quarter from 2,500 ringgit, saying reduced probability of El Nino has eased the weather risk.
The odds of an El Nino, which can bring drought to the Asia-Pacific region, have fallen to about 65 per cent through the end of the year, the US Climate Prediction Center said on Aug. 7. The agency had earlier put the chance of the phenomenon forming at almost 80 per cent.— Bloomberg
A
worker collects palm oil fruits inside a palm oil factory in Sepang,
outside Kuala Lumpur in this February 18, 2014 file photo. — Reuters picKUALA
LUMPUR, Aug 11 — Palm oil stockpiles in Malaysia, the biggest producer
after Indonesia, increased last month from the lowest level since June
2013 as production rose more than expected. Futures in Kuala Lumpur
declined to a one-year low.Futures in Kuala Lumpur tumbled from an 18-month high in March into a bear market last month on forecasts for record US production of soybeans, which can be crushed to make an alternative oil. Palm prices will probably decline on poor demand, ample oilseed supply and reduced weather risks, according to Rabobank International.
“Stockpiles are higher than what people were expecting,” Ivy Ng, an analyst at CIMB Investment Bank Bhd, said by phone. “There is a concern that exports can’t keep up with production, so inventories will keep rising.”
Prices slumped 2.2 per cent to RM2,183 a ton on Bursa Malaysia Derivatives today, the lowest level since July 30, 2013. Futures have declined 18 per cent this year.
Soybean crop
Palm oil production in Malaysia may reach a record 19.7 million tons to 19.9 million tons, while Indonesia’s output may total an all-time high of 30.5 million tons or more this year, according to Dorab Mistry, director at Godrej International Ltd. The two Southeast Asian producers together account for 86 per cent of world supplies.
Output “turned out to be quite strong, suggesting that the harvest has been good and there are a lot of fruits on the trees,” Ng said.
Rabobank cut its outlook for palm oil this month to 2,400 ringgit in the third quarter from 2,500 ringgit, saying reduced probability of El Nino has eased the weather risk.
The odds of an El Nino, which can bring drought to the Asia-Pacific region, have fallen to about 65 per cent through the end of the year, the US Climate Prediction Center said on Aug. 7. The agency had earlier put the chance of the phenomenon forming at almost 80 per cent.— Bloomberg
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