MARKET DEVELOPMENT
VEGOILS-Palm Little Changed; Investors Cautious Ahead of Industry Data
VEGOILS-Palm Little Changed; Investors Cautious Ahead of Industry Data
(Rewrites, adds technicals chart link, updates prices)
* Prices trade in 2,411-2,428 ringgit range
* Investors stay on sidelines, await fresh leads - trader
* Palm oil to fall to 2,385 ringgit - technicals
04/07/2014 (Reuters) - Malaysian palm oil futures were little changed on Thursday, with prices stuck in a tight range as investors waited for more leads on output volumes and global demand for the tropical oil.
Benchmark prices fell to their lowest level since June 12 on Tuesday at 2,385 ringgit, dragged down by heavy losses in overseas soy markets after the U.S. Department of Agriculture forecast bigger-than-expected stocks and record production of soybeans.
Worries over bigger supplies of competing products have been largely factored in, market players said, although most traders are still cautious ahead of the monthly industry data on Malaysia's palm oil stocks, output and exports due next week.
"It's a slow market - buyers and sellers are not very aggressive in the cash market," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Everybody is waiting for the next bit of news before they decide what to do. All the bearish news is out and palm still remains supportive for now."
The benchmark September contract on the Bursa Malaysia Derivatives Exchange was nearly flat at 2,428 ringgit ($760) per tonne by Thursday's close, with prices stuck between 2,411 and 2,428 ringgit.
Total traded volume stood at 53,483 lots of 25 tonnes, above the average 35,000 lots.
Technicals showed that Malaysian palm oil has completed a rebound from its July 1 low of 2,385 ringgit per tonne, and is expected to revisit this low, said Reuters market analyst Wang Tao.
"Regardless of an extension of the current rebound, the low at 2,385 ringgit could be eventually touched," Tao said, adding that a break above 2,433 ringgit will trigger a further gain to 2,448 ringgit.
Traders said lower crude oil prices could add pressure on palm, making it a less attractive option for biodiesel feedstock.
The tropical oil is headed for its biggest weekly loss in five weeks, with a 0.7 percent drop so far this week.
Brent crude futures dipped below $111 a barrel on Thursday as supply fears began to ease after Libya declared an end to an oil crisis that has slashed exports from the OPEC member.
In other competing vegetable oil markets, the U.S. soyoil contract rose 0.2 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange shed 0.3 percent.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2470 +20.00 2440 2470 160
MY PALM OIL AUG4 2441 +1.00 2427 2442 557
MY PALM OIL SEP4 2428 +1.00 2411 2428 18291
CHINA PALM OLEIN JAN5 5788 -30.00 5784 5820 231956
CHINA SOYOIL JAN5 6768 -22.00 6750 6790 220064
CBOT SOY OIL DEC4 38.87 +0.09 38.77 39.05 4211
NYMEX CRUDE AUG4 104.05 -0.43 103.95 104.29 16076
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 = 3.1930 Malaysian ringgit)
($1 = 6.2129 Chinese yuan)
* Prices trade in 2,411-2,428 ringgit range
* Investors stay on sidelines, await fresh leads - trader
* Palm oil to fall to 2,385 ringgit - technicals
04/07/2014 (Reuters) - Malaysian palm oil futures were little changed on Thursday, with prices stuck in a tight range as investors waited for more leads on output volumes and global demand for the tropical oil.
Benchmark prices fell to their lowest level since June 12 on Tuesday at 2,385 ringgit, dragged down by heavy losses in overseas soy markets after the U.S. Department of Agriculture forecast bigger-than-expected stocks and record production of soybeans.
Worries over bigger supplies of competing products have been largely factored in, market players said, although most traders are still cautious ahead of the monthly industry data on Malaysia's palm oil stocks, output and exports due next week.
"It's a slow market - buyers and sellers are not very aggressive in the cash market," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Everybody is waiting for the next bit of news before they decide what to do. All the bearish news is out and palm still remains supportive for now."
The benchmark September contract on the Bursa Malaysia Derivatives Exchange was nearly flat at 2,428 ringgit ($760) per tonne by Thursday's close, with prices stuck between 2,411 and 2,428 ringgit.
Total traded volume stood at 53,483 lots of 25 tonnes, above the average 35,000 lots.
Technicals showed that Malaysian palm oil has completed a rebound from its July 1 low of 2,385 ringgit per tonne, and is expected to revisit this low, said Reuters market analyst Wang Tao.
"Regardless of an extension of the current rebound, the low at 2,385 ringgit could be eventually touched," Tao said, adding that a break above 2,433 ringgit will trigger a further gain to 2,448 ringgit.
Traders said lower crude oil prices could add pressure on palm, making it a less attractive option for biodiesel feedstock.
The tropical oil is headed for its biggest weekly loss in five weeks, with a 0.7 percent drop so far this week.
Brent crude futures dipped below $111 a barrel on Thursday as supply fears began to ease after Libya declared an end to an oil crisis that has slashed exports from the OPEC member.
In other competing vegetable oil markets, the U.S. soyoil contract rose 0.2 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange shed 0.3 percent.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL4 2470 +20.00 2440 2470 160
MY PALM OIL AUG4 2441 +1.00 2427 2442 557
MY PALM OIL SEP4 2428 +1.00 2411 2428 18291
CHINA PALM OLEIN JAN5 5788 -30.00 5784 5820 231956
CHINA SOYOIL JAN5 6768 -22.00 6750 6790 220064
CBOT SOY OIL DEC4 38.87 +0.09 38.77 39.05 4211
NYMEX CRUDE AUG4 104.05 -0.43 103.95 104.29 16076
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 = 3.1930 Malaysian ringgit)
($1 = 6.2129 Chinese yuan)