KUALA LUMPUR, Aug 8 (Reuters) - Malaysian palm oil futures KPOc3 are unlikely to fall below 3,000 ringgit ($995.52) per tonne due to higher exports although the debt crisis in Europe and other parts of the world may affect some purchases, an industry official said on Monday.
The forecast by Faudzy Asrafudeen, director of marketing development for the Malaysian Palm Oil Council, comes as third-month palm oil dropped to an October 2010 low of 3,015 ringgit after the United States got its top notch credit rating cut.
But Faudzy said there could be another price rally as palm oil's discount to competing soyoil has widened in time for the Asian festival season.
Crude palm oil is trading at a $210 discount against soyoil, potentially attracting more orders with a string of holidays including the mid-Autumn festival in China and India's Diwali celebration due from September onwards.
Tuesday, August 9, 2011
Breaking News-RTRS - India's soybean output seen rising 10.5 pct in 2011/12
MUMBAI, Aug 8 (Reuters) - India's soybean output in 2011/12 is likely to rise 10.5 percent to 10.5 million tonnes as farmers plant a larger area with the crop and rains are adequate, fuelling chances soymeal exports may rise in the year, a senior industry official said.
In 2010/11 the country produced 9.5 million tonnes of soybean, the main summer-sown oilseed crop.
Madhya Pradesh and Maharashtra are the country's top two producing states, accounting for over 85 percent of total output. Soybean is crushed to produce soymeal and oil.
In 2010/11 the country produced 9.5 million tonnes of soybean, the main summer-sown oilseed crop.
Madhya Pradesh and Maharashtra are the country's top two producing states, accounting for over 85 percent of total output. Soybean is crushed to produce soymeal and oil.
Breaking News-RTRS - Goldman and Merrill stay bullish on oil
LONDON, Aug 8 (Reuters) - Oil prices will rise again soon even if they fall further in the short-term because governments have no other tools to combat slow growth other than further ease monetary policies, leading commodities trading banks said on Monday.
Another major commodities bank, Goldman Sachs, said it was still positive on several commodities including Brent oil, copper, zinc, UK natural gas and soybeans.
Another major commodities bank, Goldman Sachs, said it was still positive on several commodities including Brent oil, copper, zinc, UK natural gas and soybeans.
Breaking News-RTRS - Malaysian palm oil output to fall after July peak-MPOB
KUALA LUMPUR, Aug 8 (Reuters) - Malaysia's palm oil production hit its highest for this year in July and will start a downward trend expected to last until December, a top official of industry regulator Malaysian Palm Oil Board (MPOB) said on Monday.
Palm oil production in the world's No.2 supplier of the vegetable oil has climbed steadily on favourable crop weather and a recovery in yields that has weighed on benchmark futures.
MPOB Director General Choo Yuen May said the trend will reverse after the July peak as foreign labourers go on extended leave for Eid al-Fitr holidays, leaving more palm fruits unharvested.
Palm oil production in the world's No.2 supplier of the vegetable oil has climbed steadily on favourable crop weather and a recovery in yields that has weighed on benchmark futures.
MPOB Director General Choo Yuen May said the trend will reverse after the July peak as foreign labourers go on extended leave for Eid al-Fitr holidays, leaving more palm fruits unharvested.
Trader's Highlight
DJI-NEW YORK, Aug 8 (Reuters) - U.S. stocks plunged on Monday in the heaviest volume since last year's "flash crash," taking the S&P 500 down more than 6 percent on growing fears of a recession, in the first session after the historic loss of the country's pristine triple-A credit rating.
Panicked selling resulted in the S&P 500's worst day since December 2008, with every stock in the benchmark index ending in negative territory.
Volume totaled 17.89 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq -- the heaviest volume since the "flash crash" of May 6, 2010. Monday's volume was more than twice last year's daily average of 8.47 billion.
The Dow Jones industrial average .DJI lost 634.76 points, or 5.55 percent, to end at 10,809.85. The Standard & Poor's 500 Index .SPX sank 79.92 points, or 6.66 percent, to finish at 1,119.46. The Nasdaq Composite Index .IXIC plunged 174.72 points, or 6.90 percent, to close at 2,357.69.
NYMEX-NEW YORK, Aug 8 (Reuters) - U.S. crude oil futures slumped more than 6 percent to an eight-month low at the close on Monday, battered by a sell-off spurred by the downgrade of the U.S. credit rating.
U.S. crude closely followed Wall Street, where the Standard & Poor's 500 Index, the stock market's broadest barometer, plunged more than 6 percent on growing fears of another recession.
On the New York Mercantile Exchange, crude for September delivery settled at $81.31 a barrel, down $5.57, or 6.41 percent, the lowest since Nov. 23, 2010, when prices closed at $81.25. It was the biggest one-day percentage loss since May 5 when prices fell 8.6 percent.
CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade closed sharply higher on spillover support from limit gains in corn as hot weather in the U.S. threatened the crop, leading to forecasts for low corn yields.
The top U.S. corn and soybean state of Iowa had its hottest July in 56 years, raising worries that crop yields could be hurt, especially corn that pollinated last month, the state climatologist said.
FCPO-KUALA LUMPUR, Aug 8 (Reuters) - Malaysian palm oil futures dropped on Monday to its lowest in more than nine months, as investors fretted over global economic growth and the outlook for commodity demand after the United States lost its top AAA credit rating.
Palm oil fell below the key 3,000 ringgit level with losses coming mostly from broad-based commodity declines.
Asian shares also slid and the dollar touched a record low versus the Swiss franc, as global policymakers' pledge to take whatever actions needed to steady financial markets did little to pacify nervous investors.
The benchmark October contract KPOc3 on the Bursa Malaysia Derivatives Exchange fell as much as 1.9 percent to 2,994 ringgit ($993.53) per tonne -- lowest since late October.
Traded volumes stood at 38,986 lots at 25 tonnes each, up from the usual 25,000 lots.
REGIONAL EQUITIES-COLOMBO, Aug 8 (Reuters) - Southeast Asian stock markets fell on Monday in active trade, led by Singapore, on concern about the global economic outlook after Standard & Poor's downgraded the credit rating of the United States.
Singapore .FTSTI ended 3.7 percent weaker at a 13-month closing low, recovering only a little from a 4.9 percent fall at one stage, while Indonesia .JKSE closed 1.8 percent lower after tumbling as much as 5.2 percent.
Malaysia .KLSE ended 1.8 percent down and Thailand .SETI fell 1.4 percent. Trading volumes in Singapore and Malaysia were more than double their 30-day average, and Jakarta saw a 1.65 times its average.
Analysts said commodity companies could be worst hit due to fears of a global recession.
The Singapore market fell in strong volume ahead of a national holiday on Tuesday, with many investors preferring to cut risky positions since they would be unable to do so on Tuesday if the global jitters got worse.
Singapore-based Najeeb Jarhom, head of research at AmFraser Securities, said in a note that support on the main Singapore index had failed to hold at 2,920 and the next support level was at 2,875. The index closed at 2,884 on Monday.
Panicked selling resulted in the S&P 500's worst day since December 2008, with every stock in the benchmark index ending in negative territory.
Volume totaled 17.89 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq -- the heaviest volume since the "flash crash" of May 6, 2010. Monday's volume was more than twice last year's daily average of 8.47 billion.
The Dow Jones industrial average .DJI lost 634.76 points, or 5.55 percent, to end at 10,809.85. The Standard & Poor's 500 Index .SPX sank 79.92 points, or 6.66 percent, to finish at 1,119.46. The Nasdaq Composite Index .IXIC plunged 174.72 points, or 6.90 percent, to close at 2,357.69.
NYMEX-NEW YORK, Aug 8 (Reuters) - U.S. crude oil futures slumped more than 6 percent to an eight-month low at the close on Monday, battered by a sell-off spurred by the downgrade of the U.S. credit rating.
U.S. crude closely followed Wall Street, where the Standard & Poor's 500 Index, the stock market's broadest barometer, plunged more than 6 percent on growing fears of another recession.
On the New York Mercantile Exchange, crude for September delivery settled at $81.31 a barrel, down $5.57, or 6.41 percent, the lowest since Nov. 23, 2010, when prices closed at $81.25. It was the biggest one-day percentage loss since May 5 when prices fell 8.6 percent.
CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade closed sharply higher on spillover support from limit gains in corn as hot weather in the U.S. threatened the crop, leading to forecasts for low corn yields.
The top U.S. corn and soybean state of Iowa had its hottest July in 56 years, raising worries that crop yields could be hurt, especially corn that pollinated last month, the state climatologist said.
FCPO-KUALA LUMPUR, Aug 8 (Reuters) - Malaysian palm oil futures dropped on Monday to its lowest in more than nine months, as investors fretted over global economic growth and the outlook for commodity demand after the United States lost its top AAA credit rating.
Palm oil fell below the key 3,000 ringgit level with losses coming mostly from broad-based commodity declines.
Asian shares also slid and the dollar touched a record low versus the Swiss franc, as global policymakers' pledge to take whatever actions needed to steady financial markets did little to pacify nervous investors.
The benchmark October contract KPOc3 on the Bursa Malaysia Derivatives Exchange fell as much as 1.9 percent to 2,994 ringgit ($993.53) per tonne -- lowest since late October.
Traded volumes stood at 38,986 lots at 25 tonnes each, up from the usual 25,000 lots.
REGIONAL EQUITIES-COLOMBO, Aug 8 (Reuters) - Southeast Asian stock markets fell on Monday in active trade, led by Singapore, on concern about the global economic outlook after Standard & Poor's downgraded the credit rating of the United States.
Singapore .FTSTI ended 3.7 percent weaker at a 13-month closing low, recovering only a little from a 4.9 percent fall at one stage, while Indonesia .JKSE closed 1.8 percent lower after tumbling as much as 5.2 percent.
Malaysia .KLSE ended 1.8 percent down and Thailand .SETI fell 1.4 percent. Trading volumes in Singapore and Malaysia were more than double their 30-day average, and Jakarta saw a 1.65 times its average.
Analysts said commodity companies could be worst hit due to fears of a global recession.
The Singapore market fell in strong volume ahead of a national holiday on Tuesday, with many investors preferring to cut risky positions since they would be unable to do so on Tuesday if the global jitters got worse.
Singapore-based Najeeb Jarhom, head of research at AmFraser Securities, said in a note that support on the main Singapore index had failed to hold at 2,920 and the next support level was at 2,875. The index closed at 2,884 on Monday.
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