MARKET DEVELOPMENT
Vegoils-Palm Oil Edges up as Ringgit Weakens Export Data in Focus
Vegoils-Palm Oil Edges up as Ringgit Weakens Export Data in Focus
(Updates prices, adds new trader quote)
* Malaysian ringgit falls 0.24 pct to 3.1820 per dollar Wednesday
* Weaker ringgit attracts buying; July export data in focus-trader
* Palm oil to test support at 2,250 ringgit -technicals
30/07/2014 (Reuters) - Malaysian palm oil futures edged up on Wednesday as weakness in the ringgit stoked some buying interest, although caution ahead of palm export data and selling pressure for the spot month on the benchmark contract put a lid on gains.
The ringgit eased 0.24 percent to 3.1820 against the greenback as investors covered short positions in the dollar before the outcome of a U.S. Federal Reserve policy meeting, making the ringgit-priced palm feedstock cheaper for overseas buyers and refiners.
"We have a weak ringgit that is supportive -- that can explain why the market is trading slightly higher compared to before the holiday," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Malaysian markets were closed on Monday and Tuesday for the Muslim Eid al-Fitr festival. Prices suffered their fourth straight weekly drop last week.
Palm gave up some gains from the morning session as investors sold positions for the August spot month on the benchmark contract.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 0.1 percent to 2,267 ringgit ($712) per tonne by Wednesday's close, with prices trading between 2,254-2,289 ringgit.
"There was some selling pressure in the spot month ahead of the physical delivery (on Aug.1) which pushed the benchmark contract into the minus territory," said another Malaysia-based dealer.
Total traded volume stood at 39,371 lots of 25 tonnes, slightly above the average 35,000 lots.
Market participants are waiting for export data for the full month of July, which will be released by cargo surveyors Intertek Testing Services and Societe Generale de Surveillance on July 31 and Aug. 4 respectively.
Technicals showed that Malaysian palm oil is expected to test support at 2,250 ringgit per tonne, with a good chance of breaking below that level and falling towards 2,220 ringgit, according to Reuters market analyst Wang Tao.
Some traders said palm oil prices, which slid from 2,511 ringgit at the end of June to the lowest in more than 11 months at 2,247 ringgit last week, may rise as poor crop conditions for soybeans lift soyoil prices.
The U.S. Agriculture Department said on Monday that soybeans were rated 71 percent good-to-excellent as of July 27, a 2 percentage point decline from a week earlier.
However, some doubted palm prices would be helped much.
"The soybean oil and palm oil spread is quite narrow right now. If soybean oil rises, palm may not go up. The spread needs to widen," the first trader said.
The U.S. soyoil contract shed 0.4 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange fell 0.3 percent.
In other markets, Brent crude oil steadied around $108 a barrel on Wednesday in a market that has been range-bound as ample supplies and political risk offset each other.
Palm, soy and crude oil prices at 1022 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG4 2318 -17.00 2306 2350 973
MY PALM OIL SEP4 2292 +0.00 2278 2314 4074
MY PALM OIL OCT4 2267 +2.00 2254 2289 19678
CHINA PALM OLEIN JAN5 5654 +12.00 5618 5662 591772
CHINA SOYOIL JAN5 6454 -16.00 6426 6464 222268
CBOT SOY OIL DEC4 36.39 -0.14 36.03 36.69 5713
NYMEX CRUDE SEP4 101.17 +0.20 100.86 101.61 20676
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 = 3.1825 Malaysian ringgit)
($1 = 6.1717 Chinese yuan)
* Malaysian ringgit falls 0.24 pct to 3.1820 per dollar Wednesday
* Weaker ringgit attracts buying; July export data in focus-trader
* Palm oil to test support at 2,250 ringgit -technicals
30/07/2014 (Reuters) - Malaysian palm oil futures edged up on Wednesday as weakness in the ringgit stoked some buying interest, although caution ahead of palm export data and selling pressure for the spot month on the benchmark contract put a lid on gains.
The ringgit eased 0.24 percent to 3.1820 against the greenback as investors covered short positions in the dollar before the outcome of a U.S. Federal Reserve policy meeting, making the ringgit-priced palm feedstock cheaper for overseas buyers and refiners.
"We have a weak ringgit that is supportive -- that can explain why the market is trading slightly higher compared to before the holiday," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Malaysian markets were closed on Monday and Tuesday for the Muslim Eid al-Fitr festival. Prices suffered their fourth straight weekly drop last week.
Palm gave up some gains from the morning session as investors sold positions for the August spot month on the benchmark contract.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 0.1 percent to 2,267 ringgit ($712) per tonne by Wednesday's close, with prices trading between 2,254-2,289 ringgit.
"There was some selling pressure in the spot month ahead of the physical delivery (on Aug.1) which pushed the benchmark contract into the minus territory," said another Malaysia-based dealer.
Total traded volume stood at 39,371 lots of 25 tonnes, slightly above the average 35,000 lots.
Market participants are waiting for export data for the full month of July, which will be released by cargo surveyors Intertek Testing Services and Societe Generale de Surveillance on July 31 and Aug. 4 respectively.
Technicals showed that Malaysian palm oil is expected to test support at 2,250 ringgit per tonne, with a good chance of breaking below that level and falling towards 2,220 ringgit, according to Reuters market analyst Wang Tao.
Some traders said palm oil prices, which slid from 2,511 ringgit at the end of June to the lowest in more than 11 months at 2,247 ringgit last week, may rise as poor crop conditions for soybeans lift soyoil prices.
The U.S. Agriculture Department said on Monday that soybeans were rated 71 percent good-to-excellent as of July 27, a 2 percentage point decline from a week earlier.
However, some doubted palm prices would be helped much.
"The soybean oil and palm oil spread is quite narrow right now. If soybean oil rises, palm may not go up. The spread needs to widen," the first trader said.
The U.S. soyoil contract shed 0.4 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange fell 0.3 percent.
In other markets, Brent crude oil steadied around $108 a barrel on Wednesday in a market that has been range-bound as ample supplies and political risk offset each other.
Palm, soy and crude oil prices at 1022 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG4 2318 -17.00 2306 2350 973
MY PALM OIL SEP4 2292 +0.00 2278 2314 4074
MY PALM OIL OCT4 2267 +2.00 2254 2289 19678
CHINA PALM OLEIN JAN5 5654 +12.00 5618 5662 591772
CHINA SOYOIL JAN5 6454 -16.00 6426 6464 222268
CBOT SOY OIL DEC4 36.39 -0.14 36.03 36.69 5713
NYMEX CRUDE SEP4 101.17 +0.20 100.86 101.61 20676
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 = 3.1825 Malaysian ringgit)
($1 = 6.1717 Chinese yuan)