Friday, June 15, 2012

RTRS- India's refined palm oil imports surge in May

NEW DELHI, June 14 (Reuters) - India's refined palm oil imports surged 70 percent in May as worries about a hike in duties receded, prices fell and demand picked up ahead of the Ramadan festival in July, a top trade body said on Thursday.

India is the world's No. 1 importer of vegetable oils, covering about half its annual demand of 15 million to 16 million tonnes through imports. Much of its palm oil comes from Indonesia, which is promoting a move to refined oil to support its refiners.

India's imports of refined palm oil surged to 165,426 tonnes in May from 97,547 tonnes in April, the Solvent Extractors' Association of India (SEA) said, higher than average expectations in a Reuters poll but within forecast ranges. [ID:nL3E8HA05C]

India's refined oil imports have been on a generally rising trend since October 2011, when Indonesia, the world's top palm oil producer, altered taxes to make its refined palm oil more attractive than the crude variety.

"The current duty structure favours more exports of refined oil from Indonesia than crude oil," B. V. Mehta, executive director of SEA, told Reuters.

Indian refiners' calls on the government for retaliatory action, after the Indonesian move reined in domestic refining and put many plants in India on the verge of closure, have so far proved fruitless because food inflation is high. [ID:nL4E8E51LY]

Expectations the government would hike import taxes in its March budget or soon after deterred buyers of imported refined palm oil in March and April.

In the first seven months of the current year from November, India's refined palm oil imports rose to 1.1 million tonnes, a jump of 98 percent from the year-ago period.

Mehta said refined palm oil imports would continue to be higher than the average 2011 monthly levels of 90,000-100,000 tonnes if the government does not restrict purchases by raising the import duty.

Cheaper prices also encouraged buying in May, with imported refined palm oil $106 per tonne cheaper than in April, the trade data showed.

Total vegetable oil imports in May fell 3.1 percent to 896,921 tonnes due to a decline in the purchase of soft oils such as soyoil and sunflower oils after stocks were built up in April.

Trader's Highlight

DJI- NEW YORK, June 14 (Reuters) - U.S. stocks rose on Thursday after news major central banks are preparing coordinated action if the results of Greek elections this weekend generate turmoil in financial markets.

Based on the latest available data, the Dow Jones industrial average <.DJI> was up 156.51 points, or 1.25 percent, at 12,652.89. The Standard & Poor's 500 Index <.SPX> was up 14.27 points, or 1.09 percent, at 1,329.15. The Nasdaq Composite Index <.IXIC> was up 17.72 points, or 0.63 percent, at 2,836.33.

NYMEX- NEW YORK, June 14 (Reuters) - U.S. crude futures rose on Thursday as OPEC agreed to keep its current production ceiling steady and oil moved even higher in post-settlement trading on news that central banks are preparing to respond to any turmoil resulting from Greece's upcoming election.

OPEC left oil output limits on hold, hoping that top producer Saudi Arabia scales back its production after its recent unilateral increase in output. [ID:nL5E8HE6GW]

Several members in the Organization of the Petroleum Exporting Countries called on Saudi to cut back to bring collective supply down to the 30 million barrels per day (bpd) limit. Extra Saudi production is largely responsible for lifting actual OPEC output to 31.6 million bpd.

Oil prices extended gains in post-settlement trading on news that central banks from major economies are ready to take steps to stabilize financial markets by providing liquidity and preventing a credit squeeze if the outcome of Greek elections on Sunday causes tumultuous trading. [ID:nL1E8HEEK]

The news also sent U.S. stocks and the euro higher.

* On the New York Mercantile Exchange, July crude rose $1.29, or 1.56 percent, to settle at $83.91 a barrel, trading as low as $82.27 and reaching $84.42 in post-settlement trading.

* India is seeking extra oil supplies from OPEC members Saudi Arabia, Qatar and Algeria.[ID:nL3E8HE6DF]

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell for a second day on corn/soybean spreading and long liquidation tied to economic uncertainty, especially in top soy buyer China, traders said.

* Traders hold a near-record-large long position in CBOT soybeans, leaving the market vulnerable to bouts of long liquidation.

* Open interest in spot July soybeans was above 176,000 contracts with just over two weeks left before first notice day for deliveries on June 29.

* Soyoil posted the biggest losses in the soy complex, pressured by macroeconomic worries that also dragged down European and Asian vegoil markets. Malaysian palm oil futures slumped to their lowest level of 2012. [ID:nL3E8HE2UA]

* Market expecting updated acreage figures Friday from Informa Economics. Informa in May forecast U.S. soybean seedings at 75.8 million acres, nearly 2 million more than USDA'S March planting intentions figure.

* The market fell despite larger-than-expected weekly soy export sales. USDA reported sales of U.S. soybeans in the latest week at 1.005 million tonnes, above trade estimates for 500,000 to 750,000 tonnes.

* USDA reported weekly U.S. soymeal sales at 141,400 tonnes, near the high end of expectations for 75,000 to 150,000 tonnes. USDA pegged weekly soyoil sales at 7,300 tonnes, within a range of trade estimates for 5,000 to 15,000 tonnes.

* Market also bucked bullish monthly soy crushing data. The National Oilseed Processors Association reported the U.S. soybean crush for May at 138.266 million bushels, up from 131.708 million in April and above the average trade estimate of 135.1 million.

* NOPA showed U.S. May soyoil stocks at 2.312 billion lbs, down from 2.385 billion in April and in line with trade expectations.

FCPO- SINGAPORE, June 14 (Reuters) - Malaysian palm oil futures slumped to their lowest in 2012 on Thursday as the euro zone debt crisis and sluggish U.S. growth triggered a flight of capital from riskier assets.

Investors were waiting for fresh trading cues from the results of an Italian debt auction and U.S. jobs data later in the day, as well as Greek polls this weekend that could precipitate the country's exit from the bloc. Uncertainty about the global economy pushed Asian shares down on Thursday. [MKTS/GLOB]
"On the weekend ahead we are going to see the Greek election and market participants are staying away from the market for the time being," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.

"Fundamentals remain quite encouraging, we have a higher demand and lower stocks. But fundamentals are not taking the front seat as macroeconomic factors are still dominating at the moment."

Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange lost 3.5 percent to close at 2,846 ringgit ($893) per tonne, the lowest level this year. Futures have lost more than 10 percent this year.

Prices also dropped below the 2,900-ringgit mark for the first time this year. The market hit a low of 2,838 ringgit earlier in the session, a level unseen since Oct. 20, 2011.

Traded volumes were high, at 37,755 lots of 25 tonnes each, compared to the usual 25,000 lots, as investors rushed to liquidate their positions.

Fundamentals were supportive, with Malaysian palm oil stocks hitting a 13-month low in May, a sign that strong demand was eating into stocks. [ID:nK7E8EU00L]

Malaysian palm oil exports were lacklustre for June 1-10, but traders expect shipments to pick up as India and Pakistan restock ahead of the Muslim fasting month starting in mid-July.

Cargo surveyors will report export numbers for the first half of the month on Friday. [PALM/ITS][PALM/SGS]

Lower soybean ending stocks reported by the U.S. Department of Agriculture on Wednesday also suggested tighter supply and could provide support for palm oil prices.

REGIONA EQUITY- BANGKOK, June 14 (Reuters) - Southeast Asian stock markets fell along with other world markets on Thursday, led by losses in commodity-linked shares that came under selling pressure amid global price weakness.

News that Spain's 10-year bond yields hit a euro-era record of 7 percent on Wednesday kept investors cautious about the debt situation in Europe, brokers in the region said.

Among underperformers, Jakarta's Composite Index <.JKSE> fell 1.8 percent to 3,791.62, its lowest close since June 6, and the Philippine index <.PSI> ended down 1.7 percent, reversing two sessions of gains.

Indonesia's biggest coal miner Bumi Resources Tbk plunged 8.9 percent, and Philippine Aboitiz Power Corp shed 3.1 percent.