MARKET DEVELOPMENT
VEGOILS-Palm Rises To 1-Mth High on Strong Exports
VEGOILS-Palm Rises To 1-Mth High on Strong Exports
16/08/2013 (Reuters) - Malaysian palm oil futures rose to the highest in more than a month on Thursday, boosted by strong exports from the world's second-largest producer as major buyer China stocks up ahead of the Mid-Autumn festival in September.
Exports of Malaysian palm oil products from Aug. 1 to 15 rose 17.7 percent to 644,589 tonnes from the 547,857 tonnes shipped from July 1 to 15, cargo surveyor Intertek Testing Services said on Thursday.
Another surveyor Societe Generale de Surveillance will release export data later in the day.
"The palm market's stronger today mostly due to good exports in the first 15 days ... We are in a price range now where immediate support is at 2,280 ringgit and resistance at 2,340 ringgit," said a trader with a foreign commodities brokerage in
Kuala Lumpur.
By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1 percent to 2,313 ringgit ($706) per tonne. Prices earlier touched 2,318 ringgit, a level not seen since July 12.
Total traded volume stood at 17,048 lots of 25 tonnes each, higher than the usual 12,500 lots.
A bullish target range on technical charts of 2,348-2,356 ringgit per tonne remains unchanged, as indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters analyst Wang Tao.
Malaysia's July palm oil end-stocks unexpectedly rose for the first time this year on a surge in production of the tropical oil.
Data from the Malaysian Palm Oil Board (MPOB) on Wednesday showed inventories rose 1 percent in July to 1.66 million tonnes, marking the first rise since December, against market estimates that stocks had dropped 3 percent.
But analysts said a surge in local consumption, indicated by the MPOB stocks data, showed that palm oil demand remained healthy.
"Despite the strong surge in production, stockpiles only rose by 1 percent ... due to a sharp increase in local palm oil consumption to a record high of 289,900 tonnes," Malaysia's RHB Investment Bank said in a research note on Thursday.
"Part of the surge was due to near-record biodiesel exports, but, more importantly, the conversion of crude palm oil to biodiesel for local consumption."
In other markets, Brent crude prices climbed towards $111 per barrel on Thursday, extending gains from the previous session on a drop in U.S. oil inventories and worries over supplies from the Middle East and North Africa.
In vegetable oil markets, the U.S. soyoil contract for December gained 0.5 percent in early Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange climbed 0.3 percent.
Palm, soy and crude oil prices at 0537 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 0 +0.00 0 0 0
MY PALM OIL SEP3 2352 +22.00 2338 2352 351
MY PALM OIL OCT3 2313 +23.00 2298 2318 5393
CHINA PALM OLEIN JAN4 5566 +10.00 5522 5580 362272
CHINA SOYOIL JAN4 7138 +22.00 7096 7150 596338
CBOT SOY OIL DEC3 42.85 +0.22 42.69 42.87 1997
NYMEX CRUDE SEP3 107.24 +0.39 106.92 107.33 7355
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=3.2775 Malaysian ringgit)
Exports of Malaysian palm oil products from Aug. 1 to 15 rose 17.7 percent to 644,589 tonnes from the 547,857 tonnes shipped from July 1 to 15, cargo surveyor Intertek Testing Services said on Thursday.
Another surveyor Societe Generale de Surveillance will release export data later in the day.
"The palm market's stronger today mostly due to good exports in the first 15 days ... We are in a price range now where immediate support is at 2,280 ringgit and resistance at 2,340 ringgit," said a trader with a foreign commodities brokerage in
Kuala Lumpur.
By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1 percent to 2,313 ringgit ($706) per tonne. Prices earlier touched 2,318 ringgit, a level not seen since July 12.
Total traded volume stood at 17,048 lots of 25 tonnes each, higher than the usual 12,500 lots.
A bullish target range on technical charts of 2,348-2,356 ringgit per tonne remains unchanged, as indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters analyst Wang Tao.
Malaysia's July palm oil end-stocks unexpectedly rose for the first time this year on a surge in production of the tropical oil.
Data from the Malaysian Palm Oil Board (MPOB) on Wednesday showed inventories rose 1 percent in July to 1.66 million tonnes, marking the first rise since December, against market estimates that stocks had dropped 3 percent.
But analysts said a surge in local consumption, indicated by the MPOB stocks data, showed that palm oil demand remained healthy.
"Despite the strong surge in production, stockpiles only rose by 1 percent ... due to a sharp increase in local palm oil consumption to a record high of 289,900 tonnes," Malaysia's RHB Investment Bank said in a research note on Thursday.
"Part of the surge was due to near-record biodiesel exports, but, more importantly, the conversion of crude palm oil to biodiesel for local consumption."
In other markets, Brent crude prices climbed towards $111 per barrel on Thursday, extending gains from the previous session on a drop in U.S. oil inventories and worries over supplies from the Middle East and North Africa.
In vegetable oil markets, the U.S. soyoil contract for December gained 0.5 percent in early Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange climbed 0.3 percent.
Palm, soy and crude oil prices at 0537 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG3 0 +0.00 0 0 0
MY PALM OIL SEP3 2352 +22.00 2338 2352 351
MY PALM OIL OCT3 2313 +23.00 2298 2318 5393
CHINA PALM OLEIN JAN4 5566 +10.00 5522 5580 362272
CHINA SOYOIL JAN4 7138 +22.00 7096 7150 596338
CBOT SOY OIL DEC3 42.85 +0.22 42.69 42.87 1997
NYMEX CRUDE SEP3 107.24 +0.39 106.92 107.33 7355
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=3.2775 Malaysian ringgit)