RTRS:VEGOILS-Palm ends week lower on stock build; industry data eyed
* Futures on course for loss of more than 3 pct this week
* Palm oil to drop to 2,867 ringgit -technicals
* Coming Up: MPOB August data, Malaysia Sept. 1-10 exports
data; Monday
(Updates prices, adds milestones)
By Chew Yee Kiat
SINGAPORE, Sept 7 (Reuters) - Malaysian crude palm oil
futures fell on Friday, posting their worst weekly performance
since late July, with traders made cautious by the prospect that
data next week could show rising inventories in the Southeast
Asian country.
Improving crop prospects in parts of the U.S. grain belt
weighed on soybeans, which in turn hurt palm oil futures, down
more than 3 percent this week, marking its second straight
weekly loss.
"Lately palm oil has been rangebound and immediate support
is at 2,900 ringgit," said a trader with a global commodity
house in Singapore. "Now everyone's looking for demand, only
that can confirm the next firm direction for palm."
The benchmark November contract on the Bursa
Malaysia Derivatives Exchange closed 0.7 percent lower at 2,927
ringgit ($941) per tonne, ending down for the fourth session in
a row. The contract dropped to 2,913 ringgit on Thursday, its
lowest level since Aug. 16.
Total traded volume stood at 44,575 lots of 25 tonnes each,
much higher than the usual 25,000 lots.
Technicals remained weak as Reuters analyst Wang Tao said
that palm oil looked likely to drop to 2,867 ringgit per tonne
based on a wave analysis.
Market players are focusing on a slew of data on Monday
including the Malaysian Palm Oil Board's figures on August
stocks, which could hit a 9-month peak as high production
offsets demand growth.
Record southeast Asian palm oil stocks may weigh on prices,
leading industry analyst Dorab Mistry said this
week.
Cargo surveyors Intertek Testing Services and Societe
Generale de Surveillance also report Sept. 1-10 exports numbers
on Monday after a strong showing in August.
Weather concerns have eased a little as a weak El Nino
predicted by the U.S. government forecaster provided relief to
Southeast Asian planters.
In a bullish signal for palm oil, crude rose on Friday ahead
of a U.S. jobs report which could strengthen the case for more
economic stimulus in the world's biggest oil consumer.
In other vegetable oil markets, U.S. soyoil for December
delivery fell 0.6 percent and the most active January
2013 soyoil contract on the Dalian Commodity Exchange
had lost 0.5 percent by 1006 GMT.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP2 2800 -40.00 2776 2820 658
MY PALM OIL OCT2 2865 -31.00 2833 2893 3295
MY PALM OIL NOV2 2927 -21.00 2895 2947 21333
CHINA PALM OLEIN JAN3 7974 -120.00 7972 8108 366050
CHINA SOYOIL JAN3 10024 -48.00 10016 10146 529962
CBOT SOY OIL DEC2 57.06 -0.32 57.00 57.65 7274
NYMEX CRUDE OCT2 95.88 +0.35 94.55 96.07 22060
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
