January 10th, Malaysian Derivatives Exchange (BMD) crude palm oil market closed down, because of the poor exports date, prompting profit-long short positions. meat slicer
Benchmark March crude palm oil contract close down 33 ringgits, to close at 3,730 ringgits per ton; April contract decline 39 ringgits, to close at 3,696 ringgits per ton.
Benchmark contract trade range is between 3,730 ringgits to 3,807 ringgits in that day.
ITS shipping Investigation Agency said that the first ten days of January, Malaysian palm oil exports were 300,250 tons, less 0.8% than the same period in last month. Another shipping Investigation Agency SGS said that the first ten days of November in 2010, Malaysian palm oil exports were 331,655 tons, less 5.7% than the same period in last month. These two data all lower than market expected level. Traders was estimated that exports are near 0.4 million tons.
The market worries about the range between palm oil and soybean oil's prices were reduce, may contain the palm oil market demand, index funds will begin to re-balance position soon, prompting investors to decline the habere positions. In passed six months, palm oil price increase 45%. meat slicer
Broker said many analysts expected that the range of palm oil stock declined were more than government expectation, also led to long position liquidation selling boom.
Malaysian Palm Oil Department expected that palm oil stock was 1.61 million tons in the end of December, compare with 1.64 million tons last month, and the palm oil production declined 16% in December, was 1.23 million tons.
Currently, Malaysian palm oil producing enters into the low season. It means that palm oil price will keep strong unit March in 2011.
Malaysian Palm Oil Department?ˉs data of December means Malaysian palm oil production reach 17 million tons in 2010, less than 17.2 tons that the analysts expected, is the second year of Malaysian palm oil production declined.
Hong Leong Investment Bank, said bad weather and supply problems will make the palm oil prices keep rising in the first quarter of this year,. The bank said the U.S. corn and soybean land competition, and the farmers are more willing to plant corn, which could lead to global oilseed and vegetable oil supplies further tight. meat slicer