AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

Malaysian palm oil futures notched their third straight day of losses on Wednesday after an industry report showed inventories in the world's second-biggest producer swelled to a six-month high in May. The Malaysian Palm Oil Board released figures showing palm inventories at the end of May rose 2.5 percent to 2.24 million tonnes, their highest since November, against market estimates for a fall to 2.14 million tonnes.
The rise in inventories may pull the plug on palm's short-lived rally to an over three-month top on Monday, which was boosted by anticipation of bigger biodiesel consumption and the ringgit currency which slid to nine-year lows. "The higher stockpile was due to stronger-than-expected output which is negative for the near-term crude palm oil price," said Ivy Ng, regional head of plantations research at CIMB Investment Bank.
"We expect stocks to rise further in June, driven by the seasonally-higher CPO output. This could dampen CPO prices unless demand picks up significantly or poor weather caused by El Nino adversely affects production," Ng added. The August palm oil contract on the Bursa Malaysia Derivatives exchange fell 1.2 percent to 2,290 ringgit ($613.53) a tonne by the day's close.
Total traded volume stood at 29,243 lots of 25 tonnes each, below the usual 35,000 lots. Cargo surveyor Intertek Testing Services on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose 2.2 percent to 468,975 tonnes from 458,677 tonnes shipped during May 1-10, signalling a slowdown to robust buying last month. Another surveyor Societe Generale de Surveillance reported a 1.9 percent increase in the same period. In other vegetable oil markets, the US July soyoil contract rose 0.4 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange was flat.

Copyright Reuters, 2015

Comments

Comments are closed.