Malaysian palm oil up

Malaysian palm oil futures bounced on Tuesday from eight-month lows hit the previous day as traders came back into the market on hopes of higher demand and a technical correction. "The market is bound for a correction and retracement on the back of strong local exports figures after it fell nearly 300 ringgit the previous day," said a trader in Kuala Lumpur.
The benchmark crude palm oil contract on Bursa Malaysia Derivatives settled up 0.7 percent to 3,063 ringgit ($1,001.799) per tonne after it hit an eight-month low the previous day. Overall traded volume was 25,407 lots of 25 tonnes each, a tad higher than the usual 25,000 lots.
Cargo surveyor Societe Generale de Surveillance on Monday said the exports of Malaysian palm oil products during June 1 to 25 jumped 15 percent to 1,270,888 tonnes from 1,104,075 tonnes shipped during the same period in May. Strong demand growth could be offset by growing stocks in Malaysia, which are likely to surpass 2 million tonnes this month on higher output as well as imports from neighbouring Indonesia.
Frost & Sullivan's Singapore-based global vice president Chris de Lavigne sees palm oil trading between 2,500 ringgit to 3,000 ringgit in second half of 2011 due to uncertain economic conditions and strong supply from Malaysia - the world's No 2 producer.
"Economic wobbles will continue to put pressure on commodities into Q3 with a potential recovery in Q4 dependent on potential stimulus," Chris said in a research note. The previous day, palm oil hit an eight-month low as traders scaled back ahead of a Greek vote on unpopular austerity measures that raises questions about Europe's financial health and global economic growth.
On Tuesday, other vegetable oils were mixed in Asian hours. US soyoil for July delivery rose 0.4 percent in Asian hours, reversing losses from the previous session, after the US Department of Agriculture reported new soybean sales to China. US wheat, corn and soybeans staged gains of up to 1.2 percent in a nervous market on Tuesday, rebounding after large falls at the start of the week and ahead of a key US crop report. But the most active January 2012 soyoil contract on China's Dalian Commodity Exchange down 0.6 percent on Tuesday.