RTRS:VEGOILS-Palm oil slips to 2-week low as stocks weigh
* Market players expect record-high stocks for October
* Futures posted 4.1 percent loss for the week
* Palm oil to retest support at 2,497 ringgit - technicals
(Updates prices, milestone)
By Chew Yee Kiat
SINGAPORE, Nov 2 (Reuters) - Malaysian palm oil futures
edged down on Friday to a two-week low, as investors remained
cautious on market expectations of record high stocks in
October.
Prices were earlier locked in a tight range as traders
looked for fresh trading cues, although bearish sentiment seemed
to dominate despite strong export numbers that could help ease
stocks.
"The market is still stuck within a range and finding
direction," said a dealer with a foreign commodities brokerage
in Malaysia. "End stocks in October are going to hit higher,
around 2.63-2.65 million tonnes. With record-high stocks, the
market can't be bullish."
The benchmark January contract on the Bursa
Malaysia Derivatives Exchange fell 1.6 percent to close at
2,496 ringgit ($818) per tonne, after going as low as 2,490
ringgit, a level last seen on Oct. 18.
Total traded volumes stood at 25,866 lots of 25 tonnes each,
a tad higher than the usual 25,000 lots.
For the week, the edible oil posted a 4.1 percent loss as
prices came under pressure on lower November taxes in top
producer Indonesia and as Sandy, one of the worst storms to hit
the United States in years, triggered fears of slower commodity
demand.
Technicals showed palm oil will retest a support at 2,497
ringgit per tonne, with a good chance of breaking it and falling
to 2,469 ringgit, said Reuters market analyst Wang Tao.
Malaysian October palm oil exports surged to 1.6 million
tonnes, the highest so far this year, thanks to significantly
stronger European demand.
But concerns remained that stocks could still climb above an
all-time high of 2.48 million tonnes in September on seasonally
high output. The industry regulator, the Malaysian Palm Oil
Board, will release official data for October inventory levels
on Nov. 12.
Brent crude held steady near $108 a barrel on Friday as
investors look ahead to key jobs data from the United States for
more signs of economic recovery, which would boost fuel demand.
In other vegetable oil markets, U.S. soyoil for December
delivery slipped 1.1 percent in late Asian trade. The
most active May 2013 soybean oil contract on the Dalian
Commodity Exchange also fell, closing 2.2 percent lower.
Palm, soy and crude oil prices at 1009 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV2 2370 -34.00 2365 2404 131
MY PALM OIL DEC2 2427 -40.00 2418 2465 1597
MY PALM OIL JAN3 2496 -41.00 2490 2533 13082
CHINA PALM OLEIN MAY3 6962 -110.00 6936 7092 577100
CHINA SOYOIL MAY3 8880 -222.00 8872 9110 1066320
CBOT SOY OIL DEC2 49.86 -0.57 49.67 50.63 13444
NYMEX CRUDE DEC2 86.35 -0.74 86.18 87.05 25029
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
