(For physical price assessments, see MPOI1.)
Dec. 11 (Bloomberg) -- Palm oil fluctuated between gains and losses after data showed exports declined from Malaysia, the second-largest producer, boosting concerns inventories will further increase from an eight-month high in November.
The February delivery contract rose and fell at least 0.3 percent before trading at 2,640 ringgit ($823) a metric ton on the Bursa Malaysia Derivatives by the midday break. Futures entered a bull market last month on speculation production in top supplier Indonesia will drop for the first time since 1998.
Shipments from Malaysia fell 26 percent to 366,898 tons in the first 10 days of December from the same period a month earlier, cargo surveyor SGS (Malaysia) Sdn. said yesterday. Inventories climbed 7.2 percent to 1.98 million tons in November from a month earlier, the highest since March, while exports lost 8.7 percent to 1.52 million tons, the biggest drop since February, Malaysian Palm Oil Board data showed.
“The recent rise in CPO price may have negatively affected demand,” Ivy Ng, an analyst at CIMB Investment Bank Bhd., wrote in a report today, referring to crude palm oil by its initials. “This may have led some consumers to switch to other oils.”
Palm’s discount to soybean oil was at about $69 a ton today, compared with $297 at the start of the year as the tropical oil gained 8.3 percent while soybean oil dropped 19 percent.
Soybean oil for January delivery climbed 0.7 percent to 40.40 cents a pound on the Chicago Board of Trade. Soybeans were little changed at $13.38 a bushel.
Refined palm oil for May delivery was little changed at 6,248 yuan ($1,029) a ton on the Dalian Commodity Exchange. Soybean oil gained 0.3 percent to 7,250 yuan.
--Editors: Ovais Subhani, Thomas Kutty Abraham