MARKET DEVELOPMENT
VEGOILS-Palm Ends Higher but Hovers Near 1-yr Lows; Industry Data in Focus
VEGOILS-Palm Ends Higher but Hovers Near 1-yr Lows; Industry Data in Focus
(Updates with closing prices, adds paragraph on global food prices)
* Prices seen between 2,239 and 2,294 rgt as market waits for fresh leads -trader
* Analysts expect better soybean crop ratings next week- Reuters poll
* Palm oil's target of 2,220 ringgit aborted -technicals
08/08/2014 (Reuters) - Malaysian palm oil futures ended marginally higher on Thursday, but continued to hover near one-year lows as investors grew cautious ahead of key stocks and output data in the world's second-largest palm grower.
The benchmark contract had slid to its lowest since Aug. 12, 2013 on Wednesday, stretching its losing streak into a third straight day as a round of technical selling dragged on prices already pressured by fears of rising global edible oil supplies.
"After yesterday's hard test on the range's support, next it should move higher to test its resistance at 2,294 ringgit in coming days," said a trader with a local commodities brokerage.
"Range trading within 2,239-2,246 to 2,294 ringgit may continue while waiting for fresh leads from next week's MPOB and USDA data, and clues on August palm production," the Kuala Lumpur trader added.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed up 0.4 percent at 2,255 ringgit ($703) per tonne on Thursday, just above the previous session's low of 2,247 ringgit. Prices were trapped between 2,247 and 2,263 ringgit.
Total traded volume only amounted to 21,742 lots of 25 tonnes, below the usual 35,000 lots.
"Sellers are not overly keen to sell - it's very low levels- and buyers feel the market is a bit on the bearish side, so they refuse to buy. It's a clash of wills," said another Kuala Lumpur-based trader.
"I expect market to go sideways and stay a little bit under pressure, unless there are some fundamental changes," the trader added.
Technicals showed that a bearish target at 2,220 ringgit per tonne has been aborted for palm oil, as it stood above a support at 2,250 ringgit after briefly piercing below it, said Reuters market analyst Wang Tao.
Industry regulator, the Malaysian Palm Oil Board, is due to release official data on end-July palm stocks, production and exports on Monday.
A Reuters survey pegged end-July stocks at a more than 3-year low of 1.64 million tonnes, although market players warn that a surge in palm output will push up stockpiles in the following months.
Favourable crop weather in the U.S. Midwest has also fuelled expectations that the U.S Department of Agriculture will raise estimates of soybeans in its monthly report next Tuesday.
Bumper supplies of the competing oilseed for crushing into soyoil would water down palm's food and fuel demand, especially from price-sensitive buyers, and weigh on prices.
The United Nations food agency said on Thursday that global food prices hit a six-month low in July, led mainly by sharp declines in grains, oilseeds and dairy, which balanced out rising meat and firm sugar prices.
The U.S. soyoil contract for December fell 0.5 percent in late Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange edged up 0.3 percent.
In other markets, Brent crude oil fell towards $104 a barrel on Thursday as ample supply in global markets was compounded by worries over the impact of trade sanctions on global economic growth.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG4 2313 -5.00 2310 2330 129
MY PALM OIL SEP4 2277 -2.00 2275 2292 1988
MY PALM OIL OCT4 2255 +8.00 2247 2263 12392
CHINA PALM OLEIN JAN5 5626 +14.00 5606 5646 280002
CHINA SOYOIL JAN5 6410 +18.00 6404 6432 166822
CBOT SOY OIL DEC4 36.03 -0.17 36.01 36.26 4385
NYMEX CRUDE SEP4 96.73 -0.19 96.58 97.16 16322
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 = 3.207 Malaysian ringgit)
($1 = 6.1619 Chinese yuan)
($1 = 61.32 Indian rupee)
* Prices seen between 2,239 and 2,294 rgt as market waits for fresh leads -trader
* Analysts expect better soybean crop ratings next week- Reuters poll
* Palm oil's target of 2,220 ringgit aborted -technicals
08/08/2014 (Reuters) - Malaysian palm oil futures ended marginally higher on Thursday, but continued to hover near one-year lows as investors grew cautious ahead of key stocks and output data in the world's second-largest palm grower.
The benchmark contract had slid to its lowest since Aug. 12, 2013 on Wednesday, stretching its losing streak into a third straight day as a round of technical selling dragged on prices already pressured by fears of rising global edible oil supplies.
"After yesterday's hard test on the range's support, next it should move higher to test its resistance at 2,294 ringgit in coming days," said a trader with a local commodities brokerage.
"Range trading within 2,239-2,246 to 2,294 ringgit may continue while waiting for fresh leads from next week's MPOB and USDA data, and clues on August palm production," the Kuala Lumpur trader added.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed up 0.4 percent at 2,255 ringgit ($703) per tonne on Thursday, just above the previous session's low of 2,247 ringgit. Prices were trapped between 2,247 and 2,263 ringgit.
Total traded volume only amounted to 21,742 lots of 25 tonnes, below the usual 35,000 lots.
"Sellers are not overly keen to sell - it's very low levels- and buyers feel the market is a bit on the bearish side, so they refuse to buy. It's a clash of wills," said another Kuala Lumpur-based trader.
"I expect market to go sideways and stay a little bit under pressure, unless there are some fundamental changes," the trader added.
Technicals showed that a bearish target at 2,220 ringgit per tonne has been aborted for palm oil, as it stood above a support at 2,250 ringgit after briefly piercing below it, said Reuters market analyst Wang Tao.
Industry regulator, the Malaysian Palm Oil Board, is due to release official data on end-July palm stocks, production and exports on Monday.
A Reuters survey pegged end-July stocks at a more than 3-year low of 1.64 million tonnes, although market players warn that a surge in palm output will push up stockpiles in the following months.
Favourable crop weather in the U.S. Midwest has also fuelled expectations that the U.S Department of Agriculture will raise estimates of soybeans in its monthly report next Tuesday.
Bumper supplies of the competing oilseed for crushing into soyoil would water down palm's food and fuel demand, especially from price-sensitive buyers, and weigh on prices.
The United Nations food agency said on Thursday that global food prices hit a six-month low in July, led mainly by sharp declines in grains, oilseeds and dairy, which balanced out rising meat and firm sugar prices.
The U.S. soyoil contract for December fell 0.5 percent in late Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange edged up 0.3 percent.
In other markets, Brent crude oil fell towards $104 a barrel on Thursday as ample supply in global markets was compounded by worries over the impact of trade sanctions on global economic growth.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG4 2313 -5.00 2310 2330 129
MY PALM OIL SEP4 2277 -2.00 2275 2292 1988
MY PALM OIL OCT4 2255 +8.00 2247 2263 12392
CHINA PALM OLEIN JAN5 5626 +14.00 5606 5646 280002
CHINA SOYOIL JAN5 6410 +18.00 6404 6432 166822
CBOT SOY OIL DEC4 36.03 -0.17 36.01 36.26 4385
NYMEX CRUDE SEP4 96.73 -0.19 96.58 97.16 16322
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 = 3.207 Malaysian ringgit)
($1 = 6.1619 Chinese yuan)
($1 = 61.32 Indian rupee)