MARKET DEVELOPMENT
VEGOILS-Palm Ends Lower as Weak Exports Hurt, But Posts Big Weekly Gain
VEGOILS-Palm Ends Lower as Weak Exports Hurt, But Posts Big Weekly Gain
(Recasts, updates prices)
* Prices up 0.6 pct this week, biggest weekly gain since late May
* Malaysia's June 1-20 palm oil exports down 5.8 pct - ITS
* Oil near $115, heads for 2nd weekly gain on Iraq fighting
21/06/2014 (Reuters) - Malaysian palm oil futures ended lower on Friday to follow weaker soyoil markets and as poor exports dragged, although the recent surge in crude prices due to tensions in Iraq lifted weekly prices to their biggest gain in eight.
The benchmark September contract on the Bursa Malaysia Derivatives Exchange edged down 0.2 percent to 2,443 ringgit ($758) per tonne by Friday's close, reversing gains from the morning session, with prices trading between 2,434 - 2,474 ringgit.
"Lower exports and worsening demand capped the upside," said a trader with a local commodities brokerage in Malaysia.
Shipments of Malaysian palm oil products during June 1-20 fell 5.8 percent to 806,303 tonnes compared with the same period a month ago, cargo surveyor Intertek Testing Services data showed, as export volumes to Europe and China dived. [PALM/ITS "People expected exports to be good because of the Ramadan period," said another trader with a foreign commodities brokerage, referring to the Muslim holy festival starting from end-June that typically drives up consumption of the vegetable oil.
"So this (the data) is a little disappointing... the market came off a little bit after they heard of the weak exports."
Total traded volume on Friday stood at 36,746 lots of 25 tonnes, just above the average 35,000 lots.
Benchmark palm prices are up 0.6 percent this week to post their biggest weekly gain in eight, as risks of supply disruptions from oil-producing Iraq lifted crude prices and made palm oil a cheaper option for biodiesel feedstock.
Brent crude slipped 15 cents to $114.91 a barrel at 0930 GMT, hovering at a nine-month high, while U.S. crude slipped 2 cents to $106.41.
Heightened tensions in oil-producing Iraq could force Baghdad to import more oil products to meet its own domestic needs, further tightening energy markets and in turn boosting palm.
"The energy market is the main pillar supporting palm at the moment," the second Kuala Lumpur based trader said.
Market participants said the drop in overseas soyoil markets in afternoon trade also weighed on the tropical oil. Palm typically tracks soyoil, a common fuel and food substitute.
The U.S. soyoil contract fell 0.7 percent in late Asian trade, while the most active soybean oil contract on the DalianCommodities Exchange gained 0.7 percent.
Palm, soy and crude oil prices at 1044 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2460 -7.00 2451 2487 375
MY PALM OIL AUG4 2452 -5.00 2444 2480 5343
MY PALM OIL SEP4 2443 -5.00 2434 2474 20399
CHINA PALM OLEIN JAN5 5938 +20.00 5898 5954 221134
CHINA SOYOIL JAN5 6910 +48.00 6860 6914 332782
CBOT SOY OIL JUL4 40.33 -0.28 40.23 40.68 3344
NYMEX CRUDE JUL4 106.56 +0.15 106.33 106.75 1377
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 = 3.2225 Malaysian ringgit)
($1 = 6.2260 Chinese yuan)
* Prices up 0.6 pct this week, biggest weekly gain since late May
* Malaysia's June 1-20 palm oil exports down 5.8 pct - ITS
* Oil near $115, heads for 2nd weekly gain on Iraq fighting
21/06/2014 (Reuters) - Malaysian palm oil futures ended lower on Friday to follow weaker soyoil markets and as poor exports dragged, although the recent surge in crude prices due to tensions in Iraq lifted weekly prices to their biggest gain in eight.
The benchmark September contract on the Bursa Malaysia Derivatives Exchange edged down 0.2 percent to 2,443 ringgit ($758) per tonne by Friday's close, reversing gains from the morning session, with prices trading between 2,434 - 2,474 ringgit.
"Lower exports and worsening demand capped the upside," said a trader with a local commodities brokerage in Malaysia.
Shipments of Malaysian palm oil products during June 1-20 fell 5.8 percent to 806,303 tonnes compared with the same period a month ago, cargo surveyor Intertek Testing Services data showed, as export volumes to Europe and China dived. [PALM/ITS "People expected exports to be good because of the Ramadan period," said another trader with a foreign commodities brokerage, referring to the Muslim holy festival starting from end-June that typically drives up consumption of the vegetable oil.
"So this (the data) is a little disappointing... the market came off a little bit after they heard of the weak exports."
Total traded volume on Friday stood at 36,746 lots of 25 tonnes, just above the average 35,000 lots.
Benchmark palm prices are up 0.6 percent this week to post their biggest weekly gain in eight, as risks of supply disruptions from oil-producing Iraq lifted crude prices and made palm oil a cheaper option for biodiesel feedstock.
Brent crude slipped 15 cents to $114.91 a barrel at 0930 GMT, hovering at a nine-month high, while U.S. crude slipped 2 cents to $106.41.
Heightened tensions in oil-producing Iraq could force Baghdad to import more oil products to meet its own domestic needs, further tightening energy markets and in turn boosting palm.
"The energy market is the main pillar supporting palm at the moment," the second Kuala Lumpur based trader said.
Market participants said the drop in overseas soyoil markets in afternoon trade also weighed on the tropical oil. Palm typically tracks soyoil, a common fuel and food substitute.
The U.S. soyoil contract fell 0.7 percent in late Asian trade, while the most active soybean oil contract on the DalianCommodities Exchange gained 0.7 percent.
Palm, soy and crude oil prices at 1044 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2460 -7.00 2451 2487 375
MY PALM OIL AUG4 2452 -5.00 2444 2480 5343
MY PALM OIL SEP4 2443 -5.00 2434 2474 20399
CHINA PALM OLEIN JAN5 5938 +20.00 5898 5954 221134
CHINA SOYOIL JAN5 6910 +48.00 6860 6914 332782
CBOT SOY OIL JUL4 40.33 -0.28 40.23 40.68 3344
NYMEX CRUDE JUL4 106.56 +0.15 106.33 106.75 1377
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 = 3.2225 Malaysian ringgit)
($1 = 6.2260 Chinese yuan)