MARKET DEVELOPMENT
VEGOILS-Palm Touches Near One-month High as Export Data Eyed
VEGOILS-Palm Touches Near One-month High as Export Data Eyed
25/06/2014 (Reuters) - Malaysian palm oil futures recovered earlier losses to briefly hit a near one-month high on Tuesday, before ending the session little changed as crude prices eased and traders positioned themselves ahead of key export data.
By the close, the benchmark September contract on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,484 ringgit ($770) per tonne. Earlier, prices touched a low of 2,464 ringgit before hitting a near one-month high of 2,492 ringgit.
"The market is waiting for tomorrow's export figure," said a Kuala Lumpur-based trader with a foreign commodities brokerage. "Today we are trading in a range and awaiting new news."
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will release Malaysia's June 1-25 palm oil export data on June 25.
Benchmark palm prices eased late last week, weighed down by poor export data despite expectations of an uptick in demand due to the start of Ramadan, which typically drives up consumption of the vegetable oil.
"There is a slowdown from buying on the Chinese side because of tomorrow's export figure," the trader added. "Tomorrow's export figures may not be as bearish as the earlier (last week) figure."
Total traded volume stood at 31,076 lots of 25 tonnes, less than the average 35,000 lots.
Brent crude slipped below $114 a barrel, retreating further from a nine-month high, as concerns eased that escalating violence in Iraq will affect supplies from OPEC's second-largest oil producer.
Higher crude prices can make palm oil a cheaper option for biodiesel feedstock, and this has partly helped palm prices gain 2 percent this month.
In competing vegetable oil markets, the U.S. soyoil contract was 0.3 percent lower in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange added 0.9 percent.
Palm typically tracks soyoil, a common fuel and food substitute.
Palm, soy and crude oil prices at 1014 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2490 +1.00 2470 2498 880
MY PALM OIL AUG4 2490 +1.00 2469 2498 4693
MY PALM OIL SEP4 2484 +3.00 2464 2492 19861
CHINA PALM OLEIN JAN5 6028 +18.00 6008 6068 375416
CHINA SOYOIL JAN5 7050 +60.00 6998 7084 763242
CBOT SOY OIL JUL4 40.57 -0.11 40.38 40.88 3429
NYMEX CRUDE AUG4 106.14 -0.03 105.25 106.17 22173
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 = 3.2170 Malaysian Ringgits)
($1 = 6.2090 Chinese Yuan Renminbi)
By the close, the benchmark September contract on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,484 ringgit ($770) per tonne. Earlier, prices touched a low of 2,464 ringgit before hitting a near one-month high of 2,492 ringgit.
"The market is waiting for tomorrow's export figure," said a Kuala Lumpur-based trader with a foreign commodities brokerage. "Today we are trading in a range and awaiting new news."
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will release Malaysia's June 1-25 palm oil export data on June 25.
Benchmark palm prices eased late last week, weighed down by poor export data despite expectations of an uptick in demand due to the start of Ramadan, which typically drives up consumption of the vegetable oil.
"There is a slowdown from buying on the Chinese side because of tomorrow's export figure," the trader added. "Tomorrow's export figures may not be as bearish as the earlier (last week) figure."
Total traded volume stood at 31,076 lots of 25 tonnes, less than the average 35,000 lots.
Brent crude slipped below $114 a barrel, retreating further from a nine-month high, as concerns eased that escalating violence in Iraq will affect supplies from OPEC's second-largest oil producer.
Higher crude prices can make palm oil a cheaper option for biodiesel feedstock, and this has partly helped palm prices gain 2 percent this month.
In competing vegetable oil markets, the U.S. soyoil contract was 0.3 percent lower in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange added 0.9 percent.
Palm typically tracks soyoil, a common fuel and food substitute.
Palm, soy and crude oil prices at 1014 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2490 +1.00 2470 2498 880
MY PALM OIL AUG4 2490 +1.00 2469 2498 4693
MY PALM OIL SEP4 2484 +3.00 2464 2492 19861
CHINA PALM OLEIN JAN5 6028 +18.00 6008 6068 375416
CHINA SOYOIL JAN5 7050 +60.00 6998 7084 763242
CBOT SOY OIL JUL4 40.57 -0.11 40.38 40.88 3429
NYMEX CRUDE AUG4 106.14 -0.03 105.25 106.17 22173
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 = 3.2170 Malaysian Ringgits)
($1 = 6.2090 Chinese Yuan Renminbi)