MARKET DEVELOPMENT
VEGOILS-Palm Inches Lower, Posts Biggest Weekly Gain in 6 Months
VEGOILS-Palm Inches Lower, Posts Biggest Weekly Gain in 6 Months
03/08/2013 (Reuters) - Malaysian palm oil futures ended slightly lower on Friday, as traders booked profits ahead of the weekend, although losses were capped by an export jump in the second half of July that could keep a lid on stocks in the world's No.2 producer.
Prices gained 3.4 percent this week, the biggest weekly jump since early February, after data showed July's full-month exports rose 4-5 percent, surpassing estimates and easing fears of a sudden spike in inventories.
Palm oil stocks in Malaysia stood at more than two-year lows of 1.65 million tonnes in June, and could edge lower to 1.6 million tonnes in July, a Reuters poll showed on Friday.
Industry regulator data for stocks, output and exports in July will be delayed to Aug. 14 due to the Eid al-Fitr holiday.
Traders say the weak ringgit, which plunged to three-year lows after Fitch Ratings downgraded Malaysia's credit outlook, will spur demand for the tropical oil as its ringgit-priced feedstock becomes cheaper for overseas buyers.
"Exports are good, that's why the market ran up more than 100 ringgit. The end-stocks are not expected to be that bearish now," said a trader with a foreign commodities brokerage.
At market close, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had eased just 0.1 percent to 2,257 ringgit ($693) per tonne. Prices earlier hit 2,284 ringgit, their highest since July 19.
Palm oil futures are up more than 100 ringgit from a nearly four-year low of 2,137 ringgit hit in two sessions at end-July.
Total traded volume on Friday stood at 25,420 lots of 25 tonnes each, below the average 35,000 lots.
Technicals suggest Malaysian palm oil is set to retrace to 2,221 ringgit per tonne, as it faces a resistance at 2,272 ringgit, said Reuters analyst Wang Tao.
Prices remain under pressure as crop-friendly weather forecasts crimp U.S. soy markets tracked by palm. The projections for bumper crops could yield bigger soybean oil supplies and snatch demand away from competing palm oil.
In other markets, Brent crude oil reached a four-month peak above $110 per barrel on Friday as strong economic data improved the demand outlook at a time of disruption to production in Africa and maintenance limiting North Sea supply.
In vegetable oil markets, the U.S. soyoil contract for December rose 0.1 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange closed 0.2 percent higher.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 2300 +0.00 2300 2310 64
MY PALM OIL SEP3 2273 -7.00 2272 2307 2662
MY PALM OIL OCT3 2257 -2.00 2250 2284 16214
CHINA PALM OLEIN JAN4 5506 +90.00 5424 5514 590064
CHINA SOYOIL JAN4 7034 +14.00 6996 7056 704494
CBOT SOY OIL DEC3 42.96 +0.04 42.89 43.21 6132
NYMEX CRUDE SEP3 107.92 +0.03 107.67 108.82 31595
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
($1=3.256 ringgit)
Prices gained 3.4 percent this week, the biggest weekly jump since early February, after data showed July's full-month exports rose 4-5 percent, surpassing estimates and easing fears of a sudden spike in inventories.
Palm oil stocks in Malaysia stood at more than two-year lows of 1.65 million tonnes in June, and could edge lower to 1.6 million tonnes in July, a Reuters poll showed on Friday.
Industry regulator data for stocks, output and exports in July will be delayed to Aug. 14 due to the Eid al-Fitr holiday.
Traders say the weak ringgit, which plunged to three-year lows after Fitch Ratings downgraded Malaysia's credit outlook, will spur demand for the tropical oil as its ringgit-priced feedstock becomes cheaper for overseas buyers.
"Exports are good, that's why the market ran up more than 100 ringgit. The end-stocks are not expected to be that bearish now," said a trader with a foreign commodities brokerage.
At market close, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had eased just 0.1 percent to 2,257 ringgit ($693) per tonne. Prices earlier hit 2,284 ringgit, their highest since July 19.
Palm oil futures are up more than 100 ringgit from a nearly four-year low of 2,137 ringgit hit in two sessions at end-July.
Total traded volume on Friday stood at 25,420 lots of 25 tonnes each, below the average 35,000 lots.
Technicals suggest Malaysian palm oil is set to retrace to 2,221 ringgit per tonne, as it faces a resistance at 2,272 ringgit, said Reuters analyst Wang Tao.
Prices remain under pressure as crop-friendly weather forecasts crimp U.S. soy markets tracked by palm. The projections for bumper crops could yield bigger soybean oil supplies and snatch demand away from competing palm oil.
In other markets, Brent crude oil reached a four-month peak above $110 per barrel on Friday as strong economic data improved the demand outlook at a time of disruption to production in Africa and maintenance limiting North Sea supply.
In vegetable oil markets, the U.S. soyoil contract for December rose 0.1 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange closed 0.2 percent higher.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 2300 +0.00 2300 2310 64
MY PALM OIL SEP3 2273 -7.00 2272 2307 2662
MY PALM OIL OCT3 2257 -2.00 2250 2284 16214
CHINA PALM OLEIN JAN4 5506 +90.00 5424 5514 590064
CHINA SOYOIL JAN4 7034 +14.00 6996 7056 704494
CBOT SOY OIL DEC3 42.96 +0.04 42.89 43.21 6132
NYMEX CRUDE SEP3 107.92 +0.03 107.67 108.82 31595
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
($1=3.256 ringgit)