MARKET DEVELOPMENT
VEGOILS-Palm Climbs To 1-Month High, Tracks Soybeans
VEGOILS-Palm Climbs To 1-Month High, Tracks Soybeans
20/08/2013 (Reuters) - Malaysian palm oil futures gained on Monday to their highest in over a month, tracking firm soybean markets and on investor optimism ahead of exports data due later this week.
Chicago soybeans climbed to its highest since July 23 as poor rains over the weekend in the U.S. crop belt threatened yields, lending strength to palm oil which is a close substitute of soybean oil.
Investors are also eyeing Malaysia's Aug. 1-20 palm exports data due on Tuesday for signs of a pick up in demand from key buyer China ahead of the Mid-Autumn festival in September.
Over the first 15 days of the month, exports rose as much as 18.7 percent from a month ago.
"Palm is clearly borrowing strength from soybeans, and there are expectations on exports as well," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
At market close, the benchmark November contract on the Bursa Malaysia Derivatives Exchange gained 1.3 percent to 2,338 ringgit ($712) per tonne.
It hit a high of 2,343 ringgit earlier in the session, a level last seen on July 12. Total traded volume stood at 39,337 lots of 25 tonnes each, higher than the average 35,000 lots.
Rising output in Malaysia, the world's No.2 palm producer, sent July end-stocks 1 percent higher from a month ago, although a record level of local consumption and rising shipments supported views for a robust demand.
The Southeast Asian nation set its crude palm oil export tax for September at 4.5 percent, unchanged since March, which could spur more exports if top rival Indonesia keeps its tax rate unchanged at 10.5 percent.
The world's top palm producer will announce its September export tariff later in the month.
In other markets, Brent crude oil strengthened above $110 a barrel on Monday as the loss of Libyan oil exports tightened supply and violent unrest in Egypt stoked fears for exports from other oil producers in the Middle East and North Africa.
In vegetable oil markets, the U.S. soyoil contract for December rose 0.6 percent in late Asian trade, while the most-active January soybean oil contract on the Dalian
Commodities Exchange was almost flat.
Palm, soy and crude oil prices at 1000 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP3 2395 +28.00 2378 2401 919
MY PALM OIL OCT3 2360 +36.00 2332 2366 10384
MY PALM OIL NOV3 2338 +29.00 2315 2343 15623
CHINA PALM OLEIN JAN4 5634 +2.00 5612 5674 358864
CHINA SOYOIL JAN4 7232 +2.00 7214 7270 690516
CBOT SOY OIL DEC3 43.44 +0.28 43.41 43.89 4695
NYMEX CRUDE SEP3 107.21 -0.25 107.00 107.78 9057
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=3.285 Malaysian ringgit)
Chicago soybeans climbed to its highest since July 23 as poor rains over the weekend in the U.S. crop belt threatened yields, lending strength to palm oil which is a close substitute of soybean oil.
Investors are also eyeing Malaysia's Aug. 1-20 palm exports data due on Tuesday for signs of a pick up in demand from key buyer China ahead of the Mid-Autumn festival in September.
Over the first 15 days of the month, exports rose as much as 18.7 percent from a month ago.
"Palm is clearly borrowing strength from soybeans, and there are expectations on exports as well," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
At market close, the benchmark November contract on the Bursa Malaysia Derivatives Exchange gained 1.3 percent to 2,338 ringgit ($712) per tonne.
It hit a high of 2,343 ringgit earlier in the session, a level last seen on July 12. Total traded volume stood at 39,337 lots of 25 tonnes each, higher than the average 35,000 lots.
Rising output in Malaysia, the world's No.2 palm producer, sent July end-stocks 1 percent higher from a month ago, although a record level of local consumption and rising shipments supported views for a robust demand.
The Southeast Asian nation set its crude palm oil export tax for September at 4.5 percent, unchanged since March, which could spur more exports if top rival Indonesia keeps its tax rate unchanged at 10.5 percent.
The world's top palm producer will announce its September export tariff later in the month.
In other markets, Brent crude oil strengthened above $110 a barrel on Monday as the loss of Libyan oil exports tightened supply and violent unrest in Egypt stoked fears for exports from other oil producers in the Middle East and North Africa.
In vegetable oil markets, the U.S. soyoil contract for December rose 0.6 percent in late Asian trade, while the most-active January soybean oil contract on the Dalian
Commodities Exchange was almost flat.
Palm, soy and crude oil prices at 1000 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP3 2395 +28.00 2378 2401 919
MY PALM OIL OCT3 2360 +36.00 2332 2366 10384
MY PALM OIL NOV3 2338 +29.00 2315 2343 15623
CHINA PALM OLEIN JAN4 5634 +2.00 5612 5674 358864
CHINA SOYOIL JAN4 7232 +2.00 7214 7270 690516
CBOT SOY OIL DEC3 43.44 +0.28 43.41 43.89 4695
NYMEX CRUDE SEP3 107.21 -0.25 107.00 107.78 9057
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=3.285 Malaysian ringgit)