In The News - 21/11/2005

Malaysian exports of oil palm products for Nov. 1-20 are estimated to have fallen 14 percent to 679,348 tonnes from the 789,289 tonnes tracked for Oct. 1-20, Societe Generale de Surveillance, a cargo surveyor, said on Monday.

The figure was down 16 percent when compared with SGS's estimate of 804,369 tonnes for Nov. 1-20, 2004.

SGS said its latest estimate comprised 591,994 tonnes of palm oils and 87,354 tonnes of oleochemicals and lauric oils.

In the palm oil category, 73,094 tonnes were made up of RBD palm oil, 256,258 tonnes of RBD palm olein, 71,435 tonnes of RBD palm stearin and 106,410 tonnes of crude palm oil.

China was the biggest buyer of Malaysian oil palm products for Nov. 1-15, taking 138,393 tonnes, followed by the United States with 49,703 tonnes, and Egypt with 45,516 tonnes.

European Union countries, another major destination, accounted for 168,970 tonnes of the export total.

Malaysian palm oil was down on Monday after new export estimates for Nov. 1 to 20 came in lower than previous shipment figures published for the month.

Weak prices of rival U.S. soyoil also weighed on crude palm oil futures in Kuala Lumpur. Soy and palm compete for exports and their prices often move in step.

At the midsession, the third-month crude palm oil contract on Bursa Malaysia Derivatives, February <KPOG6>, was down 7 ringgit at 1,411 ringgit ($373.34) a tonne.

It had traded the morning in a tight 9-ringgit band, moving between an intra-day low of 1,408 and high of 1,417. 

"It was basically a sluggish market because of the export numbers," said a trader.

Intertek Testing Services, one of the two surveyors of Malaysian palm oil exports, said on Monday it had estimated Nov. 1-20 shipments at 21 percent lower than Oct 1-20.

The cargo surveyor had reported a drop of only 17 percent for Nov. 1-15 figures.

Societe Generale de Surveillance, another exports tracker watched more closely by the palm oil industry, was due to release estimates for Nov. 1-20 by 0630 GMT on Monday.

Trade in crude palm oil futures was thin in Monday's first session, totalling 926 lots of 25 tonnes each, compared with Friday morning's business of 1,397 lots. The market can easily surpass 3,000 lots on a busy morning.

Soyoil futures on the Chicago Board of Trade closed down in Friday and remained weak in Monday's electronic session <0#ZL:>

conducted during day hours in Asia.

Palm oil prices have been soft for more than a week now after volatile swings in soyoil, and the poor performance of exports following long holidays in early November for the Hindu Diwali and Muslim Eid al-Fitr festivals.

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