MARKET DEVELOPMENT
VEGOILS-Palm Oil off 2-Week High on Weaker Exports Data
VEGOILS-Palm Oil off 2-Week High on Weaker Exports Data
27/12/2013 (Reuters) - Malaysian palm oil futures ticked lower on Thursday, moving away from a near 2-week high reached earlier this week, after initial data showed exports from the world's second-largest producer dropped more than 7 percent so far this month.
Exports of palm oil products from Dec. 1-25 fell 7.3 percent to 1,139,705 tonnes from 1,229,580 tonnes shipped during Nov. 1-25, said surveyor Intertek Testing Services. Another surveyor, SGS, will release its report later in the day.
By the midday break, the benchmark March contract on the Bursa Malaysia Derivatives Exchange had edged down 0.30 percent to 2,617 ringgit ($795) a tonne in thin volumes of 2,579 lots.
"Basically, the demand side is pretty quiet, maybe because we are coming towards the end of the year," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
"I don't think the market can move much but it's a good time to buy palm oil now for next year's requirements. I would think the market is still looking to test the resistance of 2,700 ringgit."
The Malaysian market, which sets the tone for global prices, is set for its first annual gain in three.
The March contract rose to 2,635 ringgit on Tuesday, its highest since Dec. 12, on supply concerns following monsoon floods and a weak ringgit.
The Meteorological Department issued a warning on a possible second wave of flood in state of Pahang in Peninsular Malaysia, beginning Dec 30. The recent floods in Pahang forced more than 40,000 victims to be evacuated to relief centres.
In other competing vegetable oil markets, the U.S. soyoil contract for January was untraded while the most active May soybean oil contract on the Dalian Commodities Exchange slipped 0.32 percent.
Palm, soy and crude oil prices at 0450 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN4 2582 -21.00 2582 2582 2
MY PALM OIL FEB4 2607 -10.00 2602 2614 513
MY PALM OIL MAR4 2617 -8.00 2610 2625 2579
CHINA PALM OLEIN MAY4 5948 -18.00 5916 5958 282846
CHINA SOYOIL MAY4 6888 -22.00 6864 6896 282100
CBOT SOY OIL MAR4 39.41 +0.00 0.00 0.00 0
NYMEX CRUDE FEB4 99.39 +0.17 99.05 99.65 2262
($1=3.29 Malaysian ringgit)
Exports of palm oil products from Dec. 1-25 fell 7.3 percent to 1,139,705 tonnes from 1,229,580 tonnes shipped during Nov. 1-25, said surveyor Intertek Testing Services. Another surveyor, SGS, will release its report later in the day.
By the midday break, the benchmark March contract on the Bursa Malaysia Derivatives Exchange had edged down 0.30 percent to 2,617 ringgit ($795) a tonne in thin volumes of 2,579 lots.
"Basically, the demand side is pretty quiet, maybe because we are coming towards the end of the year," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
"I don't think the market can move much but it's a good time to buy palm oil now for next year's requirements. I would think the market is still looking to test the resistance of 2,700 ringgit."
The Malaysian market, which sets the tone for global prices, is set for its first annual gain in three.
The March contract rose to 2,635 ringgit on Tuesday, its highest since Dec. 12, on supply concerns following monsoon floods and a weak ringgit.
The Meteorological Department issued a warning on a possible second wave of flood in state of Pahang in Peninsular Malaysia, beginning Dec 30. The recent floods in Pahang forced more than 40,000 victims to be evacuated to relief centres.
In other competing vegetable oil markets, the U.S. soyoil contract for January was untraded while the most active May soybean oil contract on the Dalian Commodities Exchange slipped 0.32 percent.
Palm, soy and crude oil prices at 0450 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN4 2582 -21.00 2582 2582 2
MY PALM OIL FEB4 2607 -10.00 2602 2614 513
MY PALM OIL MAR4 2617 -8.00 2610 2625 2579
CHINA PALM OLEIN MAY4 5948 -18.00 5916 5958 282846
CHINA SOYOIL MAY4 6888 -22.00 6864 6896 282100
CBOT SOY OIL MAR4 39.41 +0.00 0.00 0.00 0
NYMEX CRUDE FEB4 99.39 +0.17 99.05 99.65 2262
($1=3.29 Malaysian ringgit)