RTRS:VEGOILS-Palm oil posts 3rd straight monthly loss as exports weaken
* Malaysian palm oil exports fall from June
* U.S. drought threat remains, USDA lowers soybean condition
* Palm oil to retrace to 2,930 ringgit -technicals
(Updates prices, adds SGS export data)
By Chew Yee Kiat
SINGAPORE, July 31 (Reuters) - Malaysian crude palm oil
edged lower on Tuesday, posting its third successive monthly
loss, as weak July exports offset a downgrade of soy crop
conditions by the U.S. Department of Agriculture that fed fears
of tighter global oilseed supplies.
The USDA rated 29 percent of the soybean crop as
good-to-excellent on Monday, down 2 percentage points from the
previous week, reflecting damage from persistent drought in the
U.S. Midwest.
But palm oil futures retreated from a one-week high hit the
previous day as traders priced in a monthly decline in Malaysian
palm oil exports that could ease stocks.
"Exports are worse than expected," said a dealer with a
foreign commodities brokerage in Kuala Lumpur. "Hopefully crude
palm oil exports will pick up after the release of the tax-free
quota or else stocks might climb back up to the 2-million-tonne
mark."
Benchmark October palm oil futures on the Bursa
Malaysia Derivatives Exchange lost 0.8 percent to close at 2,980
ringgit ($953) per tonne. Prices touched 3,007 ringgit on
Monday, the highest level since July 23.
Crude palm oil futures lost 1.3 percent in July, marking
their third monthly loss in a row.
Traded volumes stood at 34,609 lots of 25 tonnes each,
higher than the usual 25,000 lots.
On the technicals front, palm oil will retrace to 2,930
ringgit as it has completed a rebound from 2,880 ringgit,
Reuters market analyst Wang Tao said.
Cargo surveyor Intertek Testing Services reported July
export numbers at 1.23 million tonnes, down 15 percent from 1.45
million in June. Another cargo surveyor, Societe Generale de
Surveillance, reported a 19 percent decline for the same period.
Reuters reported on Monday that Malaysia would increase
shipping quotas for tax free crude palm oil by up to 2 million
tonnes this year to help planters cope with higher output in the
next few months as the world's No.2 supplier struggles to
maintain its export momentum.
In response, industry body the Palm Oil Refiners Association
of Malaysia (PORAM) said late on Monday that Malaysian palm oil
refining capacity use will fall to less than 60 percent if the
government continues with the plans, and the move will
jeopardise the refining industry's competitiveness.
Brent crude slipped below $106 per barrel on Tuesday as
caution among investors grew, reducing prospects for palm oil
to be diverted to making biodiesel.
Other vegetable oil markets also traded lower, erasing gains
from the previous day.
By 1006 GMT, the most active U.S. soyoil contract for
December delivery and the most active January 2013 soyoil
contract on the Dalian Commodity Exchange had lost 0.2
percent.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG2 2955 -25.00 2931 2955 310
MY PALM OIL SEP2 2965 -29.00 2938 2982 4317
MY PALM OIL OCT2 2980 -25.00 2948 2997 17976
CHINA PALM OLEIN JAN3 7860 -4.00 7802 7892 250418
CHINA SOYOIL JAN3 9522 -16.00 9470 9526 397398
CBOT SOY OIL DEC2 53.29 -0.09 52.85 53.45 5801
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
