Malaysia unveils impressive palm oil exports

Malaysia, the world's largest producer of palm oil, on Thursday unveiled strong export performance that is likely to keep prices firm, traders said.
Exports of Malaysian oil palm products for August 1-10 stood at 469,977 tonnes, up 32 percent from 356,093 tonnes shipped between July 1 and 10, cargo surveyor Society General de Surveillance, which is closely watched by the industry, said.
Another cargo surveyor, Interlake Testing Services, said exports during the first 10 days of this month rose 17.7 percent to 458,949 tonnes from the 389,861 tonnes shipped between July 1 and 10.
"These are very bullish numbers," said one leading trader. "This will keep the market at higher levels." But some traders said hedge funds, which have been buying heavily on Bursar Malaysia Derivatives, could take profit.
"If the funds start taking profit after the news, the market will stay where it is or fall marginally," said one dealer at a domestic plantation house. "But the market is unlikely to go down much."
Palm oil prices have risen about 13 percent since the beginning of the year, boosted by Malaysia's biodiesel plans and heavy buying by hedge funds. SGS said the estimate comprised 422,027 tonnes of palm oils and 47,950 tonnes of oleochemicals and Laurie oils.
In the palm oils category, 27,933 tonnes were made up of refined, bleached and deodorised (RBD) palm oil, 217,654 tonnes of RBD palm olein, 29,530 tonnes of RBD palm stern and 65,790 tonnes of crude palm oil.
China was the single largest buyer of Malaysian oil palm products for August 1-10, taking 166,820 tonnes, followed by the United States with 40,643 tonnes. European Union countries, another major destination, accounted for 124,130 tonnes.
The Middle East emerged as a big buyer, importing 20,620 tonnes because of the approaching fasting month of Ramazan. Malaysian crude palm oil futures were higher on Thursday, backed by strong exports and high crude oil prices.
By the midday break, the benchmark third-month October crude palm oil contract on the Bursa Malaysia Derivatives market in Kuala Lumpur was up 6 ringgit at 1,683 ringgit a tonne ($462.5) after trading as high as 1,693 ringgit.