KUALA LUMPUR, July 28 (Reuters) - Palm oil futures KPOc3 could drop as low as 2,800 Malaysian ringgit ($947.55) in September as stocks in No. 2 producer Malaysia remain stubbornly high, a top analyst said on Thursday.
That represents a drop of around 29 percent from 2011 high of 3,967 ringgit in February as Godrej International's Dorab Mistry said a high output cycle remains in force and will lead to record high stocks for Malaysia by early December.
But price declines could be limited as a palm oil discount to competing soyoil would widen to a new 2011 peak of $250 per tonne, kicking in more demand, Mistry said. The narrowest discount stood at $2 per tonne in late February, according to Reuters data.
Thursday, July 28, 2011
Breaking News-RTRS - Indonesia may cut maximum palm oil export tax rate-official
JAKARTA, July 27 (Reuters) - Indonesia, the world's No. 1 palm oil producer is eyeing a lower maximum palm export tax rate, now 25 percent, as early as next month, Bambang Brojonegoro, head of the fiscal policy section at the finance ministry, said on Wednesday.
The palm oil market has been abuzz with talk that Jakarta may cut the top tax rate to 20 percent or 22.5 percent.
The palm oil market has been abuzz with talk that Jakarta may cut the top tax rate to 20 percent or 22.5 percent.
Trader's Highlight
DJI-NEW YORK, July 26 (Reuters) - The stalemate in U.S. debt talks dragged down stocks for a second day on Tuesday, and light volume showed investors remained reluctant to make bets despite another round of healthy earnings.
Declining issues solidly outpaced advancing ones, even though major averages showed mostly modest declines.
A failure to raise the U.S. debt limit by an Aug. 2 deadline could roil markets and hurt the economy if the United States puts off paying bills. Democrats and Republicans continued to joust on Tuesday over which side's plan has the better chance of passage.
At the close, the Dow Jones industrial average .DJI was down 91.50 points, or 0.73 percent, at 12,501.30. The Standard & Poor's 500 Index .SPX was down 5.49 points, or 0.41 percent, at 1,331.94. The Nasdaq Composite Index .IXIC was down 2.84 points, or 0.10 percent, at 2,839.96.
NYMEX-NEW YORK, July 27 (Reuters) - U.S. crude futures fell 2.2 percent on Wednesday after a surprise increase in domestic crude inventories and on concern that the unsettled debate about the U.S. debt limit may lead to curbed economic growth.
U.S. crude stocks rose 2.3 million barrels last week, the U.S. Energy Information Administration's weekly oil inventory report said, against a forecast for stocks to be down.
On the New York Mercantile Exchange, September crude CLU1 fell $2.19, or 2.2 percent, to settle at $97.40 a barrel, trading as high as $99.50. Prices fell to a low of $97.17 in post-settlement trading.
CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell on forecasts for increased rains in the U.S. Midwest next week, along with a rally in the U.S. dollar, traders said.
The dollar rebounded as investors took a break from selling, though uncertainty around U.S. debt negotiations may limit the rally.
FCPO-KUALA LUMPUR, July 27 (Reuters) - Malaysia palm oil futures rose 0.4 percent in light trade on Wednesday on strong soy markets as China resumed buying and dry weather in the United States, although gains were limited over concerns of a looming U.S. debt crisis.
A Republican plan to try to break a congressional deadlock over raising the U.S. debt limit stumbled amid delays and a revolt by fiscal conservatives on Tuesday, narrowing the chances for a deal to avert a default and forcing investors to flee to safe-haven assets.
Palm oil, which has lost 17.3 percent so far this year, has been rather steady as traders look out for industry analyst Dorab Mistry presenting his price outlook in Sydney on Thursday.
The benchmark October crude palm oil contract KPOc3 on Bursa Malaysia Derivatives rose 11 ringgit to 3,130 ringgit ($1,059.222) per tonne.
Overall traded volume fell to 18,512 lots of 25 tonnes each from the usual 25,000 lots.
REGIONAL EQUITIES-BANGKOK, July 27 (Reuters) - Southeast Asian stock markets pushed higher in moderate volume on Wednesday as optimism over earnings helped lift appetite for financial stocks and big-caps although the deadlock in the U.S. debt talks remained a worry.
Stocks in Indonesia .JKSE set fresh all-time highs and Thailand .SETI scaled another 15-year peak amid fund inflows and as emerging market currencies strengthened against the dollar.
Indonesia climbed 1 percent and Thailand rose 0.8 percent. Singapore .FTSTI and Philippine shares .PSI edged up slightly. Malaysia .KLSE bucked the trend, erasing early gains to end a tad lower.
In Singapore, casino operator Genting Singapore GENS.SI surged 6.1 percent after rival Las Vegas Sands LVS.N reported strong earnings from its Marina Bay Sands casino in the city-state.
Declining issues solidly outpaced advancing ones, even though major averages showed mostly modest declines.
A failure to raise the U.S. debt limit by an Aug. 2 deadline could roil markets and hurt the economy if the United States puts off paying bills. Democrats and Republicans continued to joust on Tuesday over which side's plan has the better chance of passage.
At the close, the Dow Jones industrial average .DJI was down 91.50 points, or 0.73 percent, at 12,501.30. The Standard & Poor's 500 Index .SPX was down 5.49 points, or 0.41 percent, at 1,331.94. The Nasdaq Composite Index .IXIC was down 2.84 points, or 0.10 percent, at 2,839.96.
NYMEX-NEW YORK, July 27 (Reuters) - U.S. crude futures fell 2.2 percent on Wednesday after a surprise increase in domestic crude inventories and on concern that the unsettled debate about the U.S. debt limit may lead to curbed economic growth.
U.S. crude stocks rose 2.3 million barrels last week, the U.S. Energy Information Administration's weekly oil inventory report said, against a forecast for stocks to be down.
On the New York Mercantile Exchange, September crude CLU1 fell $2.19, or 2.2 percent, to settle at $97.40 a barrel, trading as high as $99.50. Prices fell to a low of $97.17 in post-settlement trading.
CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell on forecasts for increased rains in the U.S. Midwest next week, along with a rally in the U.S. dollar, traders said.
The dollar rebounded as investors took a break from selling, though uncertainty around U.S. debt negotiations may limit the rally.
FCPO-KUALA LUMPUR, July 27 (Reuters) - Malaysia palm oil futures rose 0.4 percent in light trade on Wednesday on strong soy markets as China resumed buying and dry weather in the United States, although gains were limited over concerns of a looming U.S. debt crisis.
A Republican plan to try to break a congressional deadlock over raising the U.S. debt limit stumbled amid delays and a revolt by fiscal conservatives on Tuesday, narrowing the chances for a deal to avert a default and forcing investors to flee to safe-haven assets.
Palm oil, which has lost 17.3 percent so far this year, has been rather steady as traders look out for industry analyst Dorab Mistry presenting his price outlook in Sydney on Thursday.
The benchmark October crude palm oil contract KPOc3 on Bursa Malaysia Derivatives rose 11 ringgit to 3,130 ringgit ($1,059.222) per tonne.
Overall traded volume fell to 18,512 lots of 25 tonnes each from the usual 25,000 lots.
REGIONAL EQUITIES-BANGKOK, July 27 (Reuters) - Southeast Asian stock markets pushed higher in moderate volume on Wednesday as optimism over earnings helped lift appetite for financial stocks and big-caps although the deadlock in the U.S. debt talks remained a worry.
Stocks in Indonesia .JKSE set fresh all-time highs and Thailand .SETI scaled another 15-year peak amid fund inflows and as emerging market currencies strengthened against the dollar.
Indonesia climbed 1 percent and Thailand rose 0.8 percent. Singapore .FTSTI and Philippine shares .PSI edged up slightly. Malaysia .KLSE bucked the trend, erasing early gains to end a tad lower.
In Singapore, casino operator Genting Singapore GENS.SI surged 6.1 percent after rival Las Vegas Sands LVS.N reported strong earnings from its Marina Bay Sands casino in the city-state.
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