RTRS:VEGOILS-Palm oil slips to 8-week low on higher stocks view
* Malaysia palm oil stocks to climb to 5-month high in July
-survey
* Palm oil futures hit 2,854 ringgit, level last seen on
June 15
* Traders eye exports, MPOB and USDA data for further clues
(Updates prices, milestones)
By Chew Yee Kiat
SINGAPORE, Aug 8 (Reuters) - Malaysian crude palm oil prices
fell to near eight-week lows on Wednesday on expectations that
stocks of the edible oil recovered in July.
Stocks likely climbed in July to their highest since
February as exports slow and production rises, snapping four
straight months of declines, a Reuters survey showed on
Wednesday.
Industry regulator Malaysian Palm Oil Board (MPOB) will
release official stock and output data on Friday.
"Traders are nervous and funds have built massive long
position in grains," said a dealer with a local commodities
brokerage in Malaysia. "Fundamentals are not looking good with
higher output and tepid demand."
Benchmark October palm oil futures on the Bursa
Malaysia Derivatives Exchange fell 1.5 percent to close at
2,864 ringgit ($922) per tonne. Prices earlier touched a low of
2,854 ringgit, a level last seen on June 15.
Total traded volume picked up after the midday break to
28,933 lots of 25 tonnes each, higher than the usual 25,000
lots.
For the week, investors are awaiting other key figures,
including a monthly supply and demand report from the U.S.
Department of Agriculture (USDA) that could provide some clues
on soybean production trends and the extent of drought damage.
Tighter supplies of soybeans to be converted into soybean
oil could shift vegetable oil demand to cheaper palm oil.
Market participants are also looking out for the Malaysian
palm oil export data for the first 10 days of August due on
Friday, especially after a dismal showing in July.
On the weather front, palm oil investors are watching out
for a possibility of El Nino returning to Southeast Asia, as the
hot and dry weather pattern could damage palm oil yields for top
producers Indonesia and Malaysia.
Brent crude oil steadied above $111 per barrel on Wednesday,
just below 12-week highs but supported by worries over falling
North Sea output and hopes for more economic stimulus measures
on both sides of the Atlantic.
In other vegetable oil markets, by 1007 GMT, the most active
U.S. soyoil contract for December delivery was almost
flat. The most active January 2013 soyoil contract on
the Dalian Commodity Exchange closed 0.5 percent lower.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG2 2785 -89.00 2785 2850 119
MY PALM OIL SEP2 2821 -63.00 2810 2874 1531
MY PALM OIL OCT2 2864 -43.00 2854 2911 15773
CHINA PALM OLEIN JAN3 7758 -60.00 7754 7810 200732
CHINA SOYOIL JAN3 9536 -52.00 9536 9596 363868
CBOT SOY OIL DEC2 52.10 -0.01 52.09 52.45 6679
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
($1=3.1 Malaysian ringgit)
